Fiscal Objective in the Post IMF Program World: The Case of Albania

Author/Editor:

Jiri Jonas

Publication Date:

March 1, 2010

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper discusses the challenges facing Albania's fiscal policy following the graduation from the IMF programs. It argues that Albania's public debt remains too high and needs to be reduced. Strengthening the fiscal framework, including by introducing a numerical fiscal rule, could help achieve this objective. The paper discusses two alternative rules, with the objective of achieving a gradual decline in the public debt ratio. One rule would limit nominal expenditure growth, with a correction mechanism to guard against revenue slippages and other shocks. An alternative rule would limit the growth in nominal public debt.

Series:

Working Paper No. 2010/077

Subject:

Expenditure Fiscal policy Fiscal rules Fiscal stance Public debt

English

Publication Date:

March 1, 2010

ISBN/ISSN:

9781451982206/1018-5941

Stock No:

WPIEA2010077

Pages:

29

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