Correlation Between Fiscal Rules and Sustainable Development of the Visegrad Group Countries

Abstract

The research question presented in this analysis focuses on national fiscal rules applicable in the Visegrad Group (also called V4) expressed in the European standardised fiscal rules index and on their impact on the socio-economic policy. The use of fiscal rules as an instrument of fiscal sustainability is manifested by imposing requirements as regards borrowing and the costs of public debt service. A high level of debt can cause social development expenditure to be crowded out, contributing to growing development disparities in social and economic terms.

Keywords

• fiscal rules
• sustainable development
• public finance discipline
• visegrad group