Responding to the crisis: what are OECD countries doing to strengthen their public finances? | WPN World People News

extend their efforts in order to reach their stated goals, pushing consolidation in 2012-15 to an average of 2.8% of GDP.[iii]

About 2/3 of fiscal consolidation is taking place through expenditure reduction. Most OECD countries reduced their public sector wage bill as a percentage of GDP from 2009 to 2011 by reducing staff and salaries and are planning further cuts, targeting welfare, health, pensions and infrastructure.

Most OECD countries participating in the survey also include revenue enhancements in their consolidation packages, with more than 2/3 of them focussing on consumption and income taxes.
Estonia, the Czech Republic, Hungary and Japan have announced increased consumption related taxes with an impact between 1.5% and 2.8% of GDP.

Iceland, Ireland, Greece, Poland and Portugal have announced increased income related taxes with an impact between 1.5% and 4.4% of GDP.

Governments are also implementing their fiscal consolidation plans more slowly than previously anticipated. They would need to extend their efforts in order to reach their stated goals, pushing consolidation in 2012-15 to an average of 2.8% of GDP.[iii]

About 2/3 of fiscal consolidation is taking place through expenditure reduction. Most OECD countries reduced their public sector wage bill as a percentage of GDP from 2009 to 2011 by reducing staff and salaries and are planning further cuts, targeting welfare, health, pensions and infrastructure.

Most OECD countries participating in the survey also include revenue enhancements in their consolidation packages, with more than 2/3 of them focussing on consumption and income taxes.
Estonia, the Czech Republic, Hungary and Japan have announced increased consumption related taxes with an impact between 1.5% and 2.8% of GDP.

Iceland, Ireland, Greece, Poland and Portugal have announced increased income related taxes with an impact between 1.5% and 4.4% of GDP.

Source: OECD