From the government debt crisis in Europe to the fiscal cliff in the US, governments around the world continue to struggle to achieve fiscal sustainability and control their finances in a post-GFC world.
To achieve greater insight and understanding of the impacts of government debt and fiscal policy on the global economy, KPMG International examined the fiscal policy settings of 19* countries within the G20 group of countries across the budgetary, economic and intergenerational cycles. Based on the key findings, the report proposes the essential characteristics and attributes of a competent fiscal sustainability framework for the public sector.
* The G20 member country not included is Brussels (representing the remaining European Union (EU) member states). Since the UK, France, Germany and Italy are included as separate G20 countries in their own right, further representation from EU member states was deemed unnecessary, given that many fiscal policies are ‘Treaty driven’.