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Debt relief and the scaling up of aid to low-income countries should allow for greater fiscal space for expenditure programs to create long-term growth and lower poverty rates. But designing a suitable medium-term fiscal framework that fosters a sustainable delivery of better public services and infrastructure while maintaining a credible commitment to fiscal prudence confronts many challenges. This paper discusses what low-income countries can do to shape fiscal policy frameworks that are ambitious in trying to absorb additional aid while still ensuring longer-term sustainability for government expenditure programs and finances. It suggests what approaches can be used to manage the greater fiscal policy risks associated with a scaled-up aid environment, including coordination with monetary policy. The paper also discusses what institutional changes are needed if donors and countries are to facilitate the implementation of a higher level of aid-financed spending programs.
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Making fiscal space happen: managing fiscal policy in a world of scaled-up aid
2006, International Monetary Fund, Fiscal Affairs Dept.
in English
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Book Details
Edition Notes
Caption title.
"December 2006."
Includes bibliographical reference (p. 45-47).
Also available on the World Wide Web.
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- Created November 3, 2008
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August 18, 2022 | Edited by ImportBot | import existing book |
August 18, 2022 | Edited by ImportBot | import existing book |
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November 3, 2008 | Created by ImportBot | Imported from University of Toronto MARC record |