Deficit Reduction: Experiences of Other Nations.
Abstract
This General Accounting Office report reviews the deficit reduction experiences of six nations - Australia, Canada, Germany, Japan, Mexico, and the United Kingdom. GAO identified the elements prompting these governments to engage in fiscal austerity policies, what budget actions they took, and how they achieved political agreement to take these actions. All six countries took actions to control spending, although few programs were eliminated. Revenue growth also contributed significantly, but was generally attributable to tax systems' response to economic growth and inflation. Through these measures, five of the six countries reached fiscal balance or surplus; Canada made progress to reduce its deficit without eliminating it. Despite such progress, all but Mexico reported deficits in 1993. These experiences show that significant structural improvement in fiscal policy is possible in modern democracies, although such progress is difficult to sustain. (KAR) p. 2
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1994
- Accession Number
- ADA303094
Entities
Organizations
- United States Government Accountability Office