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The recommendation of numerical fiscal rules in Serbia, presented in this   paper, is based on the inherent bias of fiscal policy towards expenditure,   and consequently continuous fiscal deficit and excessive sovereign debt. It   is recommended that simple and straightforward numeric fiscal rules should   be introduced into the Serbian Constitution. There should be two cumulative   numerical fiscal rules, the first regarding the ceiling on sovereign debt   and the second regarding the ceiling on net new borrowing. Neither of the   rules may be violated. The ceiling on the debt level should be prescribed by   the Constitution. The ceiling on new net borrowing should depend on the   distance of the sovereign debt from the debt ceiling. An illustrative   example is provided, with a debt ceiling of 60%. However, the Fiscal Council   should specify a specific sovereign debt ceiling as part of the proposed   constitutional amendment

A case for the introduction of numerical fiscal rules in the Serbian Constitution