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Assessing the Power of the Purse: An Index of Legislative Budget Institutions

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  • Joachim Wehner
Abstract
To compare parliamentary capacity for financial scrutiny, I construct an index using data for 36 countries from a 2003 survey of budgeting procedures. The index captures six institutional prerequisites for legislative control, relating to amendment powers, reversionary budgets, executive flexibility during implementation, the timing of the budget, legislative committees and budgetary information. Various methods of index construction are reviewed. The results reveal substantial variation in the level of financial scrutiny of government by the legislature among contemporary liberal democracies. The US Congress has an index score that is more than three times as great as those for the bottom nine cases, predominantly Westminster systems. Even allowing for US exceptionalism, the top quartile of legislatures score twice as high on this index as the bottom quartile. These findings suggest that the power of the purse is a discrete and non‐fundamental element of liberal democratic governance. For some countries it is a key safeguard against executive overreach, while others maintain a constitutional myth.

Suggested Citation

  • Joachim Wehner, 2006. "Assessing the Power of the Purse: An Index of Legislative Budget Institutions," Political Studies, Political Studies Association, vol. 54(4), pages 767-785, December.
    • Handle: RePEc:bla:polstu:v:54:y:2006:i:4:p:767-785
    DOI: 10.1111/j.1467-9248.2006.00628.x
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    References listed on IDEAS

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    Cited by:

    1. Momi Dahan & Michel Strawczynski, 2020. "Budget institutions and government effectiveness," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 32(2), pages 217-246, April.
    2. Hasnain, Zahid, 2011. "Incentive compatible reforms : the political economy of public investments in Mongolia," Policy Research Working Paper Series 5667, The World Bank.
    3. Hetschko, Clemens & Quint, Dominic & Thye, Marius, 2012. "Nationale Schuldenbremsen für die Länder der Europäischen Union: Taugt das deutsche Modell als Vorbild?," Discussion Papers 2012/12, Free University Berlin, School of Business & Economics.
    4. Mohamed Zaky & Sarah El khishin, 2016. "Fiscal Governance in Egypt: Strengthening Budgetary Institutions to Counteract Political Fragmentation," Working Papers 1027, Economic Research Forum, revised Jul 2016.
    5. Eisl, Andreas, 2017. "Explaining variation in public debt: A quantitative analysis of the effects of governance," MaxPo Discussion Paper Series 17/1, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    6. Ivana Skazlic, 2021. "Routine or Rare Activity? A Quantitative Assessment of Parliamentary Scrutiny in the European Semester," Politics and Governance, Cogitatio Press, vol. 9(3), pages 112-123.
    7. Mr. Ian Lienert, 2010. "Should Advanced Countries Adopt a Fiscal Responsibility Law?," IMF Working Papers 2010/254, International Monetary Fund.
    8. repec:spo:wpmain:info:hdl:2441/67pdgvv1o1924au1fvpb4bng12 is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/67pdgvv1o1924au1fvpb4bng12 is not listed on IDEAS
    10. Toloudis Nicholas, 2015. "Varieties of Capitalism and Fiscal Stimulus, 2008–2010," TalTech Journal of European Studies, Sciendo, vol. 5(2), pages 56-69, October.
    11. Wehner, Joachim, 2006. "Legislative institutions and fiscal policy," LSE Research Online Documents on Economics 25509, London School of Economics and Political Science, LSE Library.
    12. Thomas Winzen, 2021. "The European Semester and Parliamentary Oversight Institutions Inside and Outside of the Euro Area," Politics and Governance, Cogitatio Press, vol. 9(3), pages 100-111.
    13. Wehner, Joachim, 2010. "Institutional constraints on profligate politicians: the conditional effect of partisan fragmentation on budget deficits," LSE Research Online Documents on Economics 28649, London School of Economics and Political Science, LSE Library.
    14. Robert Csehi & Daniel F. Schulz, 2022. "The EU's New Economic Governance Framework and Budgetary Decision‐Making in the Member States: Boon or Bane for Throughput Legitimacy?," Journal of Common Market Studies, Wiley Blackwell, vol. 60(1), pages 118-135, January.
    15. Andreas Eisl, 2017. "Explaining Variation in Public Debt," SciencePo Working papers Main hal-02187805, HAL.
    16. Charles R. Hankla, 2013. "Fragmented Legislatures and the Budget: Analyzing Presidential Democracies," Economics and Politics, Wiley Blackwell, vol. 25(2), pages 200-228, July.
    17. Rachel F Wang & Mr. Timothy C Irwin & Lewis K Murara, 2015. "Trends in Fiscal Transparency: Evidence from a New Database of the Coverage of Fiscal Reporting," IMF Working Papers 2015/188, International Monetary Fund.
    18. Andreas Eisl, 2017. "Explaining Variation in Public Debt," Working Papers hal-02187805, HAL.
    19. Martin Gregor, 2008. "Rozpočtová pravidla a rozpočtový proces: Teorie, empirie a realita České republiky [Budgetary rules and budget process: Theory, empirics, and the case of the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(4), pages 484-504.
    20. Taiabur Rahman & Lamia Mohsin, 2022. "Parliamentary Power of the Purse: Stocktaking the Role of the Jatiya Sangsad in the Budgetary Process in Bangladesh," Public Organization Review, Springer, vol. 22(4), pages 1217-1236, December.

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