Who Decides on Public Expenditures A Political Economy Analysis of the Budget Process – The Case of Argentina

Jul 25, 2011

Who Decides on Public Expenditures A Political Economy Analysis of the Budget Process - The Case of Argentina

The study is an examination of Argentina’s budget process, its cadres, political influences and key actors. The paper is divided into seven sections which address different facets of the issue such as the political and economic environment of the budget process, an analysis of its actual workings and fiscal policy reforms and outcomes. Argentina’s president is undoubtedly the major player in the budget process and this together with other constraints such as the strength of some recent macroeconomic shocks – and to a lesser degree, fiscal rules, agreements with International Financial Institutions (IFIs) and the influence of other actors such as governors, legislators and lobbies – have limited the ability of the Executive to substantially modify the budget process. The paper highlights the fact that Argentina has improved its budget process and fiscal outcomes significantly by engaging in several avenues of reform such as coordinating mechanisms between the federal and provincial governments, capacity building in Congress and the improving of expenditure evaluation.

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