Sub-National Constraints of Fiscal Policy-Review of the Experiences of Selected Countries

Abstract

This contribution deals with the problem of budgetary constraints imposed on local government units. The main aim is to provide descriptive characterization, classification, and evaluation of the advantages and disadvantages of subnational constraints of fiscal policy currently applied in selected countries. The experience of the European Union member states has been taken into account, as well as that of some OECD countries (Norway, Switzerland, USA, Australia and Canada) and countries cooperating with this organization (Brazil, Argentina). The article uses the method of critical analysis of the reports and statements issued by the European Commission and OECD, as well as that of legal acts and academic literature pertaining to the issues raised.