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Fiscal Management of Scaled-Up Aid

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Author Info

  • Sanjeev Gupta
  • Duncan Last
  • Isabell Adenauer
  • Kevin Fletcher
  • Gerd Schwartz
  • Shamsuddin Tareq
  • Richard Allen
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    Abstract

    This paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans. There is merit in smoothing expenditures over time so that all programs are adequately funded. The paper argues that wage-bill ceilings should be used in Fund-supported programs only in exceptional cases. The paper also discusses basic reforms for strengthening public financial management systems for effective utilization of scaled-up aid flows.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/222.

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    Length: 64
    Date of creation: 01 Sep 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/222

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    Related research

    Keywords: Public finance; Government expenditures; Fund policies; expenditure; fiscal policy; public expenditure; public spending; fiscal institutions; expenditures; mtef; public financial management; mtff; expenditure efficiency; fiscal balance; medium-term fiscal framework; annual budget; fiscal targets; public debt; health expenditure; expenditure policy; budget process; medium-term expenditure; fiscal framework; poverty-reducing expenditures; budget support; expenditure tracking; government spending; expenditure management; fiscal management; fiscal policy response; public expenditure management; fiscal indicators; fiscal reports; medium-term expenditure framework; expenditure tracking surveys; fiscal reporting; fiscal aggregates; fiscal affairs department; tax rates; fiscal policy formulation; medium-term expenditure frameworks; fiscal transparency; fiscal planning; tax base; fiscal developments; fiscal affairs; composition of public spending; expenditure levels; fiscal deficit; classification of expenditures; medium-term fiscal frameworks; expenditure framework; capital expenditures; expenditure plans; fiscal sustainability; fiscal accountability; budgetary systems; fiscal frameworks; public expenditure review; expenditure allocations; fiscal adjustment; budgetary allocations; expenditure chain; expenditure management reform; fiscal policy expenditure; public expenditure management reform; public expenditure reviews; public expenditure tracking; health expenditures; expenditure programs; public expenditure tracking surveys; medium-term fiscal projections; higher expenditure; expenditure authorization; debt service; general budget; budget constraint; fiscal position; expenditure frameworks; fiscal programming; fiscal authority; fiscal policies; administrative classification of expenditure; fiscal revenues; fiscal target; budgetary rules; budgetary process; efficiency of government expenditures; fiscal years; tax revenues; fiscal policy framework; foreign interest payments; central government budget; fiscal issues; government budget; aggregate demand; sustainable fiscal balance; recurrent expenditures; expenditure projections; tax revenue; budgetary institutions; poverty-reducing ? expenditure; poverty-reducing expenditure; fiscal module; public finances; fiscal projections; fiscal problems; classification of expenditure; tax bases; managing public expenditure; budget management; tax effort; fiscal risks; fiscal space; expenditure priorities; central fiscal; tax incentives; fiscal report; expenditure composition; tax policy; budget systems; fiscal variables;

    This paper has been announced in the following NEP Reports:

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    Cited by:
    1. Ezequiel Cabezon & Tej Prakash, 2008. "Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries," IMF Working Papers 08/217, International Monetary Fund.

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