Budgettreue

Budgettreue is a term used in German-speaking contexts to describe fidelity to a budget: the principle that spending and revenue plans should be carried out in accordance with the approved budget, and that fiscal rules, targets, and oversight are respected. It is used in public finance and governance discussions, and also appears in corporate budgeting as a discipline to limit overruns.

In practice, budgettreue encompasses legal or constitutional provisions, such as debt brakes or spending ceilings, as well as administrative and procedural measures. It involves formal budgetary processes, multi-year financial planning, transparent reporting, and independent oversight or fiscal councils. The concept also covers the tracking of deviations from the budget, explanations for variances, and corrective actions to restore compliance.

In public policy, budgettreue is often associated with the aim of maintaining fiscal credibility, ensuring sustainability of public finances, and reducing borrowing costs. It is discussed in the context of national budgets, subnational finances, and supranational rules, including European fiscal governance practices that encourage adherence to budgetary targets and prudent debt management.

Benefits commonly cited for budgettreue include improved predictability for markets, stronger long-term fiscal sustainability, and enhanced policy credibility. Critics argue that excessive rigidity can hamper necessary countercyclical measures, delay investments in times of need, and reduce flexibility to respond to unforeseen shocks. Proponents thus emphasize balancing discipline with mechanisms for exceptions, transparency, and prudent flexibility to adapt to changing economic conditions.