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Fiscal policy options to build forward better

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  • Vatcharin Sirimaneetham

    (Economic Affairs Officer, Macroeconomic Policy and Analysis Section, Macroeconomic Policy and Financing for Development Division)

Abstract

Amid tighter fiscal space in Asia and the Pacific, this paper examines how the region’s economies can mobilize additional fiscal and financial resources to ensure public debt sustainability while achieving the Sustainable Development Goals. It explores four selected policy areas, including public debt service suspension, sovereign bond financing, debt swaps for development, and catastrophe finance. While offering some specific policy recommendations, this paper notes at a broad level that developing countries in the region could further benefit from existing debt relief initiatives; governments should increasingly explore bond financing to complement traditional fiscal borrowings; creditors and debtors can work more closely to increase the effectiveness of debt swap arrangements; and countries need to have a mix of financing modalities that match their catastrophe risks. Individual Asia-Pacific countries should carefully consider the instruments and modalities that leverage their strengths and are implementable given institutional capacity.

Suggested Citation

  • Vatcharin Sirimaneetham, 2021. "Fiscal policy options to build forward better," MPDD Working Paper Series WP/21/07, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:wpmpdd:wp/21/07
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    File URL: https://www.unescap.org/kp/2021/working-paper-fiscal-policy-options-build-forward-better
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    References listed on IDEAS

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    More about this item

    Keywords

    Public debt relief; government bond; debt swap; catastrophe finance;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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