Departmental Papers

From Stimulus to Consolidation: Revenue and Expenditure Policies in Advanced and Emerging Economies

By Benedict J. Clements, Juan Toro R., Victoria J Perry

October 6, 2010

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Benedict J. Clements, Juan Toro R., and Victoria J Perry. From Stimulus to Consolidation: Revenue and Expenditure Policies in Advanced and Emerging Economies, (USA: International Monetary Fund, 2010) accessed November 21, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper identifies policy tools that could be used for fiscal consolidation in advanced and emerging economies in the years ahead. The consolidation strategy, particularly in advanced countries, should aim to stabilize age-related spending in relation to GDP, reduce non-age-related expenditure ratios, and increase revenues. Bold reforms are needed to offset projected increases in age-related spending, particularly health care. On the revenue side, measures could include improving tax compliance, for example through better international cooperation, as well as increasing the yield from VAT by eliminating exemptions and reduced rates, further developing property taxes, and increasing excise rates within the range of rates already applicable in comparable countries.

Subject: Aging, Expenditure, Health care spending, Pension spending, Population and demographics, Revenue administration, Value-added tax

Keywords: Africa, Aging, Debt ratio, DP, DPPP, Europe, Global, Health care spending, Income tax, Pension spending, Potential GDP, Public expenditure, Retirement age, Revenue enhancement, Tax revenue

Publication Details

  • Pages:

    122

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Departmental Paper No 2010/009

  • Stock No:

    FSCREA

  • ISBN:

    9781616350420

  • ISSN:

    2616-5333

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