IDEAS home Printed from
   My bibliography  Save this paper

Fiscal Rules; Coping with Revenue Volatility in Lesotho and Swaziland


  • Jiro Honda
  • Manabu Nose
  • Cesar Sosa Padilla
  • Jose L. Torres
  • Murna Morgan
  • Fernando G Im
  • Natalia A Koliadina


Over the past decade, Lesotho and Swaziland have faced significant volatility in their fiscal revenues, owing to highly unstable Southern African Customs Union (SACU) receipts. Based on model analysis, this paper explores the advantages of implementing fiscal rules to deal with such volatility. It finds that the use of a structural balance target could smooth the growth impact from revenue shocks while helping preserve sufficient international reserves during bad times. From a long-term perspective, it suggests possible welfare gains from introducing fiscal rules. Last, it concludes that, based on experiences in other countries, developing strong institutions and improving public financial management are necessary steps to ease the transitions to a rules-based fiscal policy framework.

Suggested Citation

  • Jiro Honda & Manabu Nose & Cesar Sosa Padilla & Jose L. Torres & Murna Morgan & Fernando G Im & Natalia A Koliadina, 2017. "Fiscal Rules; Coping with Revenue Volatility in Lesotho and Swaziland," IMF Departmental Papers / Policy Papers 17/05, International Monetary Fund.
  • Handle: RePEc:imf:imfdep:17/05

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Fiscal analysis; Fiscal management; Fiscal policy; Fiscal sector; Fiscal data; Fiscal framework; Fiscal rules; Fiscal rules and institutions;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfdep:17/05. 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) The email address of this maintainer does not seem to be valid anymore. Please ask Hassan Zaidi to update the entry or send us the correct email address. General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.