Islamic Republic of Mauritania: Selected Issues Paper

February 12, 2015

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Islamic Republic of Mauritania: Selected Issues Paper, (USA: International Monetary Fund, 2015) accessed November 25, 2024

Summary

This Selected Issues paper analyzes various aspects of fiscal framework in the Republic of Mauritania. Mauritania needs to avoid pro-cyclical fiscal policies and adopt rules that guide medium-term fiscal sustainability. Fiscal policy has been responsible and focused on fiscal consolidation, but important challenges lie ahead linked to price volatility, exhaustibility of resources, and effective use of resources. Mauritania has important natural resource wealth, and its fiscal policy is shaped by considerations resulting from its reliance on resource revenues. Prospects for price shocks in the short term and significant mining expansion in the long term could pose significant challenges to fiscal policy management. The analysis of fiscal framework options reveals that a fiscal rule which targets a nonresource primary balance for long-term sustainability, designed to allow some frontloading of public spending on productive investment, would be appropriate for Mauritania under the assumption of a finite resource horizon. A fiscal rule targeting a structural resource balance would be appropriate in the scenario of long-lasting resources, possible under the assumption of favorable developments in the global commodity markets.

Subject: Education, Expenditure, Fiscal governance, Fiscal policy, Production, Productivity, Public investment spending

Keywords: Banking sector reform, CR, Export diversification, Fiscal governance, Global, Investment, Investment path, Investment plan, ISCR, Labor force, Mauritania, North Africa, Price, Productivity, Public investment spending, Resource, Resource revenue

Publication Details

Pages:

68
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2015/036
Stock No:

1MRTEA2015002
ISBN:

9781498354226
ISSN:

1934-7685

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