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The concept of fiscal sustainability is a helpful ex-ante instrument to analyse public budgets. The concept addresses the question which extent of public debt can be carried by future generations and states whether the burden of a certain debt is acceptable or not. This instrument is designed for total public budgets including several possible activities of the public sector. However, there are arguments against the one to one transformation of the concept of sustainability to the subnational level. The present paper deals with the argument of “critical minimum levels” of spending in consideration of equivalent living conditions within a federal system.

Nachhaltige Finanzpolitik unter Berücksichtigung gleichwertiger Lebensverhältnisse