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Regla fiscal cuantitativa para consolidar y blindar las finanzas públicas de Colombia

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Author Info

  • Ignacio Lozano

    ()
    (Banco de la República)

  • Hernán Rincón

    ()
    (Banco de la República)

  • Miguel Sarmiento

    ()
    (Banco de la República)

  • Jorge Ramos

    ()
    (Banco de la República)

Abstract

Fiscal rules enhance the credibility of economic policy, allow countercyclical and sustainable fiscal policies, and contribute to macroeconomic stability and economic growth. The Colombian government has used fiscal rules to limit the growth of expenditure and the indebtedness of sub-national governments, and to promote fiscal transparency and responsibility. However, their success has been partial. This paper presents and analyzes a quantitative fiscal rule of 1% of GDP in the structural primary surplus for the central government, in order to consolidate the country’s adjustment of public finances and reduce their vulnerability in the future. If that rule were implemented this year, the government would attain savings of 0.7% of GDP between 2008 and 2011, which would reduce the public debt level by about 3 percentage points of GDP by the end of the period.

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File URL: http://www.uexternado.edu.co/facecono/ecoinstitucional/workingpapers/ilozano19.pdf
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Bibliographic Info

Article provided by Universidad Externado de Colombia - Facultad de Economía in its journal Revista de Economía Institucional.

Volume (Year): 10 (2008)
Issue (Month): 19 (July-December)
Pages: 311-352

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Handle: RePEc:rei:ecoins:v:10:y:2008:i:19:p:311-352

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Keywords: fiscal rules; credibility; anti-cyclical fiscal policy; stability; structural primary balance;

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References

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  2. Ignacio Lozano & Jorge Toro, . "Fiscal Policy Throughout the Cycle: The Colombian Experience," Borradores de Economia 434, Banco de la Republica de Colombia.
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  14. Ignacio Lozano & Hernán Rincón & Miguel Sarmiento & Jorge Ramos, 2008. "Regla fiscal cuantitativa para consolidar y blindar las finanzas públicas de Colombia," BORRADORES DE ECONOMIA 004597, BANCO DE LA REPÚBLICA.
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  22. Jerome Creel, 2003. "Ranking Fiscal Policy Rules: the Golden Rule of Public Finance vs. the Stability and Growth Pact," Documents de Travail de l'OFCE 2003-04, Observatoire Francais des Conjonctures Economiques (OFCE).
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Citations

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Cited by:
  1. Ignacio Lozano & Hernán Rincón & Miguel Sarmiento & Jorge Ramos, 2008. "Regla fiscal cuantitativa para consolidar y blindar las finanzas públicas de Colombia," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 10(19), pages 311-352, July-Dece.
  2. José A. Murillo & Tonatiuh Peña, 2010. "Futuros de productos básicos alimentarios: ¿son útiles para pronosticar la inflación?," Monetaria, Centro de Estudios Monetarios Latinoamericanos, vol. 0(3), pages 377-430, julio-sep.
  3. Hernán Rincón, 2010. "Un análisis comparativo de reglas fiscales cuantitativas," BORRADORES DE ECONOMIA 007283, BANCO DE LA REPÚBLICA.
  4. Julieta Fuentes & Ricardo Salazar, 2010. "Cálculo de un indicador coincidente y adelantado de la actividad económica Salvadoreña," Monetaria, Centro de Estudios Monetarios Latinoamericanos, vol. 0(3), pages 289-376, julio-sep.

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