Fiscal Management of Scaled-Up Aid |
|
Author:
| Gupta, Sanjeev Last, Duncan Adenauer, Isabell |
Series title: | IMF Working Papers |
ISBN: | 978-1-4519-8327-2 |
Publication Date: | Sep 2007 |
Publisher: | International Monetary Fund
|
Book Format: | Ebook |
List Price: | Contact Supplier contact
|
Book Description:
|
This paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans. There is merit in smoothing expenditures over time so that all programs are adequately funded. The paper argues that wage-bill ceilings should be used in Fund-supported programs only in...
More DescriptionThis paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans. There is merit in smoothing expenditures over time so that all programs are adequately funded. The paper argues that wage-bill ceilings should be used in Fund-supported programs only in exceptional cases. The paper also discusses basic reforms for strengthening public financial management systems for effective utilization of scaled-up aid flows.