IMF Working Papers

Strengthening the WAEMU Regional Fiscal Framework

By Antonio David, Alexandre Nguyen-Duong, Hoda Selim

March 4, 2022

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Antonio David, Alexandre Nguyen-Duong, and Hoda Selim. Strengthening the WAEMU Regional Fiscal Framework, (USA: International Monetary Fund, 2022) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers 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 assesses the adequacy and effectiveness of the WAEMU fiscal framework along three pillars that have proven to effectively support fiscal discipline in monetary unions—common fiscal rules (including adequacy of numerical ceilings as well as elements of design and enforcement), shared public financial management systems, and coordination mechanisms for decentralized fiscal policies. We undertake a calibration of regional debt and fiscal deficit ceilings taking into account different macroeconomic tradeoffs and risks and conclude that numerical ceilings that prevailed before the suspension of the fiscal rules remain adequate and strike the right balance between growth and fiscal sustainability. The paper also proposes reform options to strengthen the WAEMU regional fiscal surveillance framework, with a view to more effectively supporting fiscal discipline.

Subject: Fiscal governance, Fiscal policy, Fiscal rules, Public debt, Public financial management (PFM)

Keywords: Deficit rule, Effectiveness of the WAEMU, Fiscal coordination, Fiscal governance, Fiscal governance, Fiscal policy, Fiscal rules, Fiscal rules, Monetary unions, PFM, Safety buffer, WAEMU, WAEMU convergence criteria, WAEMU system, West Africa

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/049

  • Stock No:

    WPIEA2022049

  • ISBN:

    9798400204357

  • ISSN:

    1018-5941

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