Managing Revenue Volatility in a Small Island Economy: The Case of Kiribati
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Summary:
The formulation of fiscal policy in Kiribati faces unusual challenges. Kiribati's revenue base is among the most volatile in the world, and it possesses sizeable financial assets. Drawing on lessons from some other countries who experience high volatility in their revenues, this paper proposes a fiscal policy rule for Kiribati which is nested within a medium-term macroeconomic framework that aims to ensure the sustainable use of Kiribati's financial assets while managing the impact of extreme revenue volatility. It also discusses improvements in the institutional fiscal policy framework that could support such a framework.
Series:
Working Paper No. 2005/154
Subject:
Agroindustries Budget planning and preparation Expenditure Fiscal policy Oil
English
Publication Date:
August 1, 2005
ISBN/ISSN:
9781451861730/1018-5941
Stock No:
WPIEA2005154
Pages:
23
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