FISCAL WATCHDOGS

“Fiscal Policy: Independent Fiscal Watchdogs"

by

Acknowledgement

I would like to acknowledge the contribution of my supervisor for his advice and the contribution he has made for this research. I also would like to mention that without the support of my supervisor this research would not be possible as he triggered my scholarly abilities from which I can take assistance in future researches too. Furthermore, I'm really thankful for the insights, guidance, and perspectives of my supervisor.

Declaration

I [Full Name], declare that this dissertation, and its entire content has been my own work except where otherwise cited, and it was not presented or published before for any academic examination. This dissertation only stands for my own observation, insight, and thoughts. Moreover, not in essence that is associated with the university.

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Abstract

This report assesses the fiscal watchdogs in UK, particularly Office for budget responsibility (OBR). The main focus of this paper is to analyze that how they operate by gauging the role of fiscal watchdogs in detail. This paper also discusses the effects of independent fiscal councils. This paper also identifies the importance of fiscal watchdogs as well as evaluates how they can strengthen or support the fiscal discipline incentives. The fiscal watchdogs can be strengthen the process by increasing fiscal transparency, raise the current deficit long term cost awareness, and by disclosing government initiatives towards fiscal rules violation.

The purpose of this paper is to examine empirically the role of fiscal watchdogs, how they operate, why they exist, and effectiveness of fiscal councils. This research focuses on the fiscal watchdogs of United Kingdom, particularly OBR.

The design of this research is qualitative in nature. The secondary source for gathering of data is employed. The public, private, as well as online libraries databases are accessed to collect information.

The discussion shows that the fiscal watchdogs, particularly OBR, become an essential part in forecasting the economy and public finances of a country, evaluate the progress of the Government's fiscal targets, measure the public finances long-term sustainability, as well as examine the costing of treasury budget measures.

The effectiveness of Office for Budget Responsibility (OBR) as a fiscal watchdog can be understand by viewing the direct discipline effect on government budgets. The focus of OBR is to provide an estimate of future cost and current deficits, as well as give sustainable forecasts that provide assistance in taking budgetary decision by the government of UK.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

TABLE OF CONTENTSV

CHAPTER 1: INTRODUCTION1

Outline of the Study1

Background of the Research1

Problem Statement4

Aims and Objectives4

Ethical Considerations4

Time Scale5

CHAPTER 2: LITERATURE REVIEW6

Discussion6

Fiscal Watchdogs6

Need for Fiscal Watchdogs8

How Fiscal Watchdogs Should Operates9

Fiscal Council actually has an Effect11

CHAPTER 3: METHODOLOGY13

Research Design13

Secondary Data13

Qualitative Research13

Qualitative Research Assumptions14

Literature Search14

CHAPTER 4: DISCUSSION & ANALYSIS15

Background15

Office for Budget Responsibility (OBR)16

Role of OBR16

Responsibilities of OBR18

Forecasting18

Rule achievement18

Long term sustainability19

Working with Government20

How OBR Operate22

Criterion of OBR: Discretion over Scope and Judgments22

CHAPTER 5: CONCLUSION24

REFERENCES27

“Fiscal Policy: Independent Fiscal Watchdogs"

CHAPTER 1: INTRODUCTION

Outline of the Study

This study will be based on the topic Fiscal Policy and Independent 'Fiscal Watchdogs' in the United Kingdom”. The first chapter of will gives an introduction to ...