Advanced Search
MyIDEAS: Login

Strengthening Chile's Rule-Based Fiscal Framework

Contents:

Author Info

  • Teresa Dabán Sánchez
Registered author(s):

    Abstract

    The cornerstone of Chile’s impressive fiscal performance has been its structural balance rule. By insulating public spending from short-term copper price fluctuations and the business cycle, the rule has helped preserve fiscal discipline. However, the implementation of the rule in recent years has revealed certain challenges, and in May 2010, the government established a high-level commission to recommend reforms that could make the rule even more effective. This paper assesses the scope for improving the design and implementation of the structural balance rule in light of best practices and OECD country experience with fiscal rules. This assessment suggests several options to strengthen Chile’s fiscal rule, including by simplifying the calculation of the structural balance; enhancing the rule’s flexibility, transparency and accountability; and complementing it with a medium-term fiscal framework.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=24595
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 11/17.

    as in new window
    Length: 26
    Date of creation: 01 Jan 2011
    Date of revision:
    Handle: RePEc:imf:imfwpa:11/17

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Email:
    Web page: http://www.imf.org/external/pubind.htm
    More information through EDIRC

    Order Information:
    Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

    Related research

    Keywords: Commodity prices; Copper; External shocks; OECD; fiscal policy; fiscal rules; fiscal rule; expenditures; expenditure; medium-term fiscal framework; fiscal framework; public spending; fiscal responsibility; fiscal performance; fiscal indicators; public debt; fiscal discipline; fiscal responsibility law; expenditure growth; fiscal objectives; tax revenues; fiscal accounts; fiscal system; government expenditures; mtff; fiscal frameworks; fiscal response; public financial management; fiscal tightening; government spending; fiscal transparency; government expenditure; expansionary fiscal; fiscal surpluses; increase in expenditures; tax collections; fiscal policy rules; fiscal outcomes; fiscal balances; key fiscal indicators; fiscal impact; growth of expenditures; expenditure level; national budget; fiscal reports; fiscal policy rule; expansionary fiscal policy; public spending programs; expenditure frameworks; fiscal position; fiscal stance; tax ratios; fiscal affairs department; higher expenditure; fiscal targets; fiscal reporting; fiscal actions; budget law; expenditure ceiling; fiscal management; fiscal planning; prudent fiscal management; fiscal policy framework; central government budget; fiscal affairs; government budget; fiscal issues; fiscal stability; fiscal responsibility act; expansionary fiscal stance; fiscal sustainability; discretionary fiscal policy; budget balance; public finances; fiscal council; budget deficit; fiscal analysis; fiscal powers; tax rates; fiscal responsibility laws; fiscal variables; budget process; fiscal adjustment; total expenditures; annual budget; fiscal impulse;

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:11/17. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.