When faced with spending decisions, most elected representatives want to be seen as garnering the greatest possible benefit for their constituents. But if a prior agreement limits the size of the available pie, it may be easier to negotiate outcomes in which everyone accepts a little bit less. Of course, transparency is enhanced by good watchdogs.
In the United States, the nonpartisan CBO has ably served that role since 1974. Nongovernmental organizations that focus on budget issues, such as nonprofit think tanks, can also promote transparency. 10  See the International Monetary Fund (2009), Fiscal Rules – Anchoring Expectations for Sustainable Public Finances (779 KB PDF) (Washington: IMF, December). 11  See IMF, Fiscal Rules, in note 10.