It relies on the vision of the state you choose to subscribe and it depends upon the costs and benefits of a few highly imperfect social institutions: market trends and the public sector. (Bovaird, Loffler, 2003, p. 25) The public sector is a ubiquitous social institution having grown in size and complexity within the last fifty years. Nevertheless, this is a linear development. Whereas the development belonging to the welfare state in the late 1960s and 1970s took an unprecedented growth of men and women in most OECD states, the 1980s and 1990s was marked by concerns and attempts to reduce the strength of the public sector, or, at a minimum, to make it more helpful and all these have fiscal implications.

A good number of policies have spending implications. In cases where money becomes scarce, financial constraints can create problems in public enterprises. Though the opposite-financial crises also have...
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