This project analyses to which extent a stronger regard to qualitative aspects could create positive growth incentives when public budgets in the Free State of Saxony are consolidated. Expenditures especially relevant for growth are identified, and it is shown that it is not advisable to cut expenditures equally in all categories. In particular, expenditure reductions in education and research should be avoided. Also the reduction of expenditures on regional economic promotion and business development could have negative consequences. Due to the relatively new infrastructure, savings could instead be realized by cutting investment expenditures This project analyses to which extent a stronger regard to qualitative aspects could create positive growth incentives when public budgets in the Free State of Saxony are consolidated. Expenditures especially relevant for growth are identified, and it is shown that it is not advisable to cut expenditures equally in all categories. In particular, expenditure reductions in education and research should be avoided. Also the reduction of expenditures on regional economic promotion and business development could have negative consequences. Due to the relatively new infrastructure, savings could instead be realized by cutting investment expenditures.
Ragnitz, Joachim: "Berücksichtigung qualitativer Aspekte bei der Konsolidierung der öffentlichen Haushalte in Sachsen", ifo Dresden berichtet 04/2010, p. 23-30. (Download, PDF, 121 KB).
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