Understanding Fiscal Space

March 1, 2005

Preview Citation

Format: Chicago

Peter S. Heller Understanding Fiscal Space, (USA: International Monetary Fund, 2005) accessed November 21, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

With new initiatives to provide low income countries with external assistance in support of the Millennium Development Goals (MDGs), donors and NGOs are seeking to understand whether "fiscal space" can be provided in the context of IMF-supported programs to support these initiatives. This paper defines the concept of fiscal space and its link to fiscal sustainability, describes alternative ways in which fiscal space can be created, and notes how the IMF can support appropriate efforts to create fiscal space. The paper underscores that the issues that arise in creating fiscal space are not novel, but have always confronted governments in judging whether there is scope for additional expenditure.

Subject: Debt financing, Expenditure, External debt, Fiscal policy, Fiscal space, Fiscal sustainability, Infrastructure, National accounts

Keywords: Debt financing, Dutch Disease effect, Expenditure policy decision, Expenditure priority, Expenditure program, Expenditure structure, Fiscal space, Fiscal sustainability, GDP, Government expenditure program, Infrastructure, MDGs, PDP, Poverty-reducing spending, Reprioritizing expenditure, Revenue, Spending program, Tanzania

Publication Details

Pages:

19
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2005/004
Stock No:

PPIEA2005004
ISBN:

9781451975635
ISSN:

1564-5193

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