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Fiscal Policy Implementation in Sub-Saharan Africa

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  • Victor Duarte Lledo
  • Marcos Poplawski-Ribeiro

Abstract

This paper investigates economic, political, and institutional constraints to fiscal policy implementation in sub-saharan Africa. We find that planned fiscal adjustments or expansions are less likely to be implemented the larger they are, the more inaccurate the growth forecasts they are based on, the more fragile the regulatory system in the country, and the weaker the institutions framing the design, approval, and execution of the budget. The findings support ongoing efforts in the region to improve the quality and timeliness of economic data; enhance forecasting capacity; adopt realistic fiscal plans; and strengthen governance, budgetary institutions, and public financial management procedures.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 11/172.

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Length: 46
Date of creation: 01 Jul 2011
Date of revision:
Handle: RePEc:imf:imfwpa:11/172

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Keywords: Budgets; Economic models; Government expenditures; Revenues; fiscal policy; statistic; budget balance; computation; correlation; estimation method; autocorrelation; fiscal implementation; fiscal outcomes; fiscal plans; budgetary institutions; forecasting; graphical analysis; outlier; fiscal expansions; empirical model; fiscal balance; stata; fiscal adjustments; fiscal risks; fiscal performance; standard deviation; revenue collection; fiscal policies; fiscal institutions; computations; statistics; fiscal variables; fiscal targets; fiscal decision; fiscal authorities; standard errors; descriptive statistics; fiscal discipline; public spending; fiscal projections; scatter plot; outliers; fiscal consolidations; fiscal outturns; fiscal balances; fiscal affairs department; econometrics; tax bases; fiscal reaction; fiscal planning; fiscal changes; statistical data; fiscal budget; surveys; sample mean; fiscal forecasts; fiscal target; fiscal policy decisions; horizontal axis; fiscal years; fiscal revenues; instrumental variables; fiscal restriction; medium-term fiscal frameworks; fiscal gaps; fiscal rules; fiscal consolidation; predictability; fiscal affairs; fiscal side; tax revenues; measurement error; equation; budget constraints; fiscal behavior; public debt; predictions; fiscal frameworks; survey; measurement errors; tax collections; fiscal data; fiscal expenditures; budget management; samples; capital expenditures; cyclical fiscal policy; fiscal revenue; fiscal forecasting; instrumental variable; fiscal adjustment; budget process; fiscal policy outcomes; fiscal reaction functions; fiscal governance;

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Cited by:
  1. Ley, Eduardo & Misch, Florian, 2013. "Real-time macro monitoring and fiscal policy," Policy Research Working Paper Series 6303, The World Bank.
  2. Cimadomo, Jacopo, 2011. "Real-time data and fiscal policy analysis: a survey of the literature," Working Paper Series, European Central Bank 1408, European Central Bank.
  3. Juliana Dutra Araujo & Grace Bin Li & Marcos Poplawski-Ribeiro & Luis-Felipe Zanna, 2013. "Current Account Norms in Natural Resource Rich and Capital Scarce Economies," IMF Working Papers 13/80, International Monetary Fund.
  4. Fadia Al Hajj & Gilles Dufrénot, & Kimiko Sugimoto & Romain Wolf, 2013. "Reactions to Shocks and Monetary Policy Regimes: Inflation Targeting Versus Flexible Currency Board in Ghana, South Africa and the WAEMU," William Davidson Institute Working Papers Series wp1062, William Davidson Institute at the University of Michigan.

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