Policy Papers

Fiscal Policy Response to Scaled-Up Aid

Publication Date:

June 5, 2007

Electronic Access:

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Summary:

Sound fiscal policies are critical for handling aid volatility as well as for making effective use of scaled-up aid and other flows. By easing resource constraints, these flows allow low-income countries (LICs) to increase spending aimed at enhancing growth and reducing poverty. Effective management of these policies, however, presents a host of macroeconomic challenges, many of them fiscal.

Series:

Policy Papers

Subject:

Development assistance Fiscal policy Use of Fund Resources