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Fiscal Management of Scaled-Up Aid

Author

Listed:
  • Mr. Sanjeev Gupta
  • Mr. Duncan P Last
  • Ms. Isabell Adenauer
  • Mr. Kevin Fletcher
  • Mr. Gerd Schwartz
  • Mr. Shamsuddin Tareq
  • Mr. Richard I Allen

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.

Suggested Citation

  • Mr. Sanjeev Gupta & Mr. Duncan P Last & Ms. Isabell Adenauer & Mr. Kevin Fletcher & Mr. Gerd Schwartz & Mr. Shamsuddin Tareq & Mr. Richard I Allen, 2007. "Fiscal Management of Scaled-Up Aid," IMF Working Papers 2007/222, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/222
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21296
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    Citations

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    Cited by:

    1. Ezequiel Cabezon & Mr. Tej Prakash, 2008. "Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries," IMF Working Papers 2008/217, International Monetary Fund.
    2. Isabel Ortiz & Jingqing Chai & Matthew Cummins & Gabriel Vergara, 2010. "Prioritizing Expenditures for a Recovery for All: A Rapid Review of Public Expenditures in 126 Developing," Working papers 1007, UNICEF,Division of Policy and Strategy.

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