The Role Of Fiscal Think Tanks in Fiscal Policy: Global patterns and lessons for South Africa

Abstract

This paper looks at fiscal policy more broadly through the institutions of policy-making rather than more narrowly through the institutions of budgeting. It considers who shares the fiscal policy space with the ministry of finance and how the fiscal policy agenda is set. Finance ministries may share the policy space with other bodies, independent or not, and yet retain a dominant role in how the budget is set. The paper discusses some important institutional differences that shape fiscal policy-making, and how those differences affect a think tank’s role. It then describes the most important types of fiscal think tanks that have emerged, with reference to some country examples, and makes some suggestions for implications in practice. It concludes with an outline of options for a fiscal think tank in South Africa.