Rule-Based Medium-Term Fiscal Policy Framework for Tanzania.
Title:
Rule-Based Medium-Term Fiscal Policy Framework for Tanzania.
Author:
Kim, Daehaeng.
ISBN:
9781452772257
Personal Author:
Physical Description:
1 online resource (31 pages)
Series:
IMF Working Papers
Contents:
Contents -- Executive Summary -- I. Introduction -- II. Fiscal Policy in Tanzania: Improvements and Vulnerabilities -- III. A Rule-Based Medium-Term Fiscal Policy -- IV. A Possible Medium-Term Fiscal Policy Framework for Tanzania -- V. Application of the Proposed Diamond Rule to Tanzania -- VI. Concluding Remarks -- Tables -- 1. Comparison Matrix of Numerical Targets -- 2. Fiscal Rules in Selected Economies -- 3. Fiscal Rules in Sub-Saharan African Countries -- Figures -- 1. Government Domestic Revenue and GDP per Capita in Selected -- 2. Indicators of Public Debt, 2008-2028 Baseline -- 3. Indicators of Public Debt, 2008-2028 Alternative Scenario -- 4. Indicators of Public Debt, 2008-2028 Role of Concessional Borrowing and Grants -- Boxes -- 1. Fiscal Risks Disclosure -- References.
Abstract:
A zero net domestic financing (NDF) target has served Tanzania well in recent years, contributing to prudent expenditure policy, improved fiscal sustainability, and macroeconomic stability. Moving to a more flexible fiscal policy, however, may serve Tanzania better. The "diamond rule" proposed in this paper incorporates a permanent hard ceiling on debt and annual benchmark limits on NDF, expenditure growth, and nonconcessional external financing. This rule would provide flexibility for countercyclical policy and help define the fiscal space for infrastructure spending that is consistent with longrun fiscal sustainability. An illustrative simulation shows that Tanzania has considerable fiscal space for development spending.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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