Fiscal policy cycles and public expenditure in developing countries

The paper studies empirically the fiscal policy instruments by which govern ments try to influence election outcomes in 24 developing countries for the 1973-1992 period. The study finds that the main vehicle for expansionary f iscal policies around elections is increasing public expenditure rather tha n lowering taxes, and public investment cycles seem particularly prominent. Institutional mechanisms which constrain discretionary expenditure policie s and which strengthen fiscal control are therefore worthwhile considering to prevent opportunistic policy making around elections.