IMF Fiscal Affairs Department (FAD)
November 2012

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Fiscal Issues at the IMF


“Natural Resource Endowments, Governance, and Domestic Revenue Mobilization: Lessons for the CEMAC Region” with Sanjeev Gupta and Eva Jenkner: Edited by Bernardin Akitoby and Sharmini Coorey International Monetary Fund 2012

"Income Inequality and Fiscal Policy" Francesca Bastagli, David Coady, and Sanjeev Gupta, Inequality in Focus, World Bank, Volume 1, Number 3; October 2012

“Financing Health Care Reform in Emerging Economies” By Sanjeev Gupta and Baoping Shang Commonwealth Finance Ministers Report, 2012-2013

“Local governments’ fiscal balance and privatization in transition countries” by Ernesto Crivelli, Economics of Transition, October 2012, Volume 20, Issue 4, pages 677-703.

“Fueling Risk” by David Coady, Valentina Flamini, and Matias Antonio, Finance & Development, September 2012, Vol. 49, No. 3

IMF Working Papers

“Foreign Aid and Revenue: Still a Crowding Out Effect?” By Dora Benedek, Ernesto Crivelli, Sanjeev Gupta, and Priscilla Muthoora July 2012

“Tax Composition and Growth: A Broad Cross-Country Perspective” S. Acosta-Ormaechea, J. Yoo

"Some Algebra of Fiscal Transparency: How Accounting Devices Work and How to Reveal Them",Tim Irwin, September 2012

"Taxation and Development - Again", Michael Keen, September 2012

"Fiscal Rules at a Glance: Country Details from a New Dataset" Nina Budina, Tidiane Kinda, Andrea Schaechter, November 2012.

Future Events

IMF Fiscal Forum, Washington DC, April 17, 2013

Stimulus or Stymied? The Macroeconomics of Recessions, American Economic Association Panel Discussion featuring Carlo Cottarelli, Jan 6, 2013

Conference on “Fiscal Transparency in the Wake of the Crisis” organized by IMF, HM Treasury and ICAEW, Dec. 10, 2012, London

Further Information

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Copyright © 2012
International Monetary Fund
All Rights Reserved

October 2012 Fiscal Monitor

The October 2012 issue of the Fiscal Monitor finds that most countries—especially advanced economies—have made significant headway in rolling back fiscal deficits, at a broadly appropriate pace given the state of the global economy. However, fiscal consolidation will take time to yield results in terms of reducing debt stocks. The mix of revenue and expenditure policies employed by countries with sizable fiscal consolidation needs has differed, with advanced economies in general relying more on spending retrenchment than emerging markets and low-income countries.
Fiscal Transparency, Accountability and Risk
Fiscal transparency is a critical element of effective fiscal policy making and the management of fiscal risks. Over the last decade and a half, it has in many respects improved, as new standards of fiscal reporting have been developed. This paper, which was discussed at the IMF Executive Board, examines the relationship between fiscal transparency and outcomes; reviews progress in promoting greater fiscal transparency and considers the lessons of the recent crisis for existing transparency standards.
Macroeconomic Policy Frameworks for Resource Rich Developing Countries

A recent paper seeks to strengthen the prism through which policy analysis is conducted for resource-rich developing countries. The paper emphasizes the use of appropriate fiscal indicators to assess the fiscal stance (including through the use of the non-resource primary balance) and assesses the trade-offs associated with the use of alternative fiscal rules to help countries manage volatility and exhaustibility issues.
Fiscal Regimes for Extractive Industries—Design and Implementation

In many developing countries, dependence on extractive industry tax revenues has increased and will continue to grow. Designing and implementing extractive industries tax regimes is a key challenge and opportunity. This paper suggests ways to better realize revenue potential and offers advice on how to design strong fiscal regimes for extractive industries.

Bruegel-FAD Workshop; Reforming Financial Sector Taxation, September 19, 2012

FAD and the Brussels based think tank Bruegel jointly organized a seminar on"Reforming financial sector taxation: what has been done and what challenges remain". This event brought together policy-makers, practitioners and academics from Europe to take stock since the onset of the crisis. Among the participants were IMF Deputy Managing Director Nemat Shafik and FAD Director Carlo Cottarelli.
Joint Conference on Fiscal Policy and Greener Economics, Geneva October 3-4 2012

FAD co-sponsored with UNEP and GIZ a workshop: "Fiscal Policies: Towards an Inclusive Green Economy". The main focus of the workshop was the case for fiscal reforms to balance environmental and economic concerns. There were 50 participants at the workshop, including representatives from finance and environmental ministries in developing and developed countries.
Annual Meeting Seminar: Good Management of Natural Resources, October 10, Tokyo

annual meetings
Resource-rich developing countries face the challenge of managing their resource wealth, while avoiding the so-called resource curse. A seminar at the Annual Meeting in Tokyo, which FAD organized with other IMF departments, brought together a distinguished panel of experts from academia and policy makers across the world. Participants included Miguel Castilla, Minister of Economy and Finance, Peru; Paul Collier, Professor of Economics, Oxford University; Naoyuki Shinohara, IMF Deputy Managing Director, and Clair Short from the Extractive Industries Transparency Initiative.
Annual Meeting Seminar: Restoring Public Debt Sustainability in a High Risk Environment, Tokyo, October 12, 2012

This high level seminar - organized by FAD jointly with the Japanese Ministry of Finance discussed the policies needed to restore long-term debt sustainability when financial sector vulnerabilities remain high. The discussion highlighted the linkages between fiscal and financial stability and how easily contagion and adverse spillovers can spread across borders. Participants included Vitor Constâncio, Vice President of the ECB, Takehiko Nakao, Vice Minister of Finance for International Affairs, Japan; Peter Orszag, Vice Chairman, Global Banking, Citigroup; Jean Pisani-Ferry, Director, Bruegel Institute, Nemak Shafik, Deputy Managing Director IMF, and Ignazio Visco, Governor, Bank of Italy.
Third Latin American Treasury Forum Seminar, Bogota Colombia, August 22-24 2012.

Latin American Treasury Forum seminar web
The Colombian Ministry of Finance organized the Third Latin American Treasury Forum (FOTEGAL) seminar. The event brought together treasurers from Central and South America. FAD co-organised the event and provided presentations on the coordination between the treasury and central bank, and best practices in operational risk management and business continuity plans for government treasuries. FAD is supporting FOTEGAL since its inauguration in 2010 through organization of the annual seminar and preparation of research and studies. The next seminar will take place in Guatemala in 2013.

FAD in the News

US Fiscal Cliff Threatens Growth

The Economist
Let Go of the Brakes

New York Times
Meanwhile, Europe
Krugman Blog

Financial Times
IMF urges Britain to Prepare for Plan B

Daily Telegraph
World Cannot Afford Second Fiscal Cliff after Europe's Failed Attempt

Jakarta Post
MF Calls Countries to Take Measures to Reduce Debts

MF Raises Alarms over Japan's Dangerous Fiscal Course

FT Alphaville
The IMF Game Changer

Recent Blogs

Taking Stock: Public Finances Now Stronger in Many Countries
iMF Direct blog, Carlo Cottarelli

“Fiscal Smarts and the Numbers Behind Inequality”
David Coady and Sanjeev Gupta: The World Bank—News & Views

"Seeing Our Way Through The Crisis
Why We Need Fiscal Transparency" iMFdirect Blog, Carlo Cottarelli


Taking Stock: A Progress Report of Fiscal Adjustment:

IMF Cuts Global Growth Forecast

US Needs a Medium Term Fiscal Plan: Bloomberg TV

Technical Assistance

During July-October 2012, FAD provided 74 technical assistance missions from headquarters to IMF member countries and multi-country organizations.

Career Opportunities

FAD seeks talented and dedicated professionals with a background in different areas of public finance, to work on macro-fiscal policy issues and to provide technical assistance advice to IMF member countries on public financial management, tax policy reform, revenue administration, and different expenditure policy issues. Vacancies in FAD for staff and long-term expert positions are posted here. FAD also seeks experts who are interested in occasional short-term (2–3 week) assignments; interested candidates may send their CVs here.