IMF Fiscal Affairs E-Newsletter
Fiscal Affairs Department (FAD) - June 2014
External Publications
"Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries," Ernesto Crivelli and Sanjeev Gupta, European Journal of Political Economy, May 2014.
"Without Oil, How Do Gulf Countries Move? Non-hydrocarbon Business Cycles," Serhan Cevik, Journal of Economic Integration, Vol. 29, No.2, pp. 244-266, June 2014.
"Hitchhiker's Guide to Inflation in Libya," Serhan Cevik and Katerina Teksoz, International Journal of Economic Policy in Emerging Economies, Vol. 7, No. 1, pp. 1-21, April 2014.
"The Interest Rate and Exchange Rate Channels in Dollarized and Non-Dollarized Economies," D. Coble, in Managing Economic Volatility in Latin America, ed. by G. Gelos and A. Werner: IMF Publishing, Ch. 8.
Books
"Equitable and Sustainable Pensions," editors; Benedict Clements, Frank Eich, Sanjeev Gupta, International Monetary Fund, Washington D.C.
IMF Working Papers
"Inflation Targeting and Fiscal Rules: Do Interactions and Sequencing Matter?," Jean-Louis Combes, Xavier Debrun, Alexandru Minea and Rene Tapsoba, WP No. 14/89.
"Strengthening Post-Crisis Fiscal Credibility: Fiscal Councils on the Rise - A New Dataset," Xavier Debrun and Tidiane Kinda, WP No. 14/58.
"Sub-National Credit Risk and Sovereign Bailouts: Who Pays the Premium?"Eva Jenkner and Zhongjin Lu, WP No. 14/40.
"The Quest for Non-Resource-Based FDI: Do Taxes Matter?" Tidiane Kinda, WP No. 14/15.
"Deep Roots of Fiscal Behavior," Serhan Cevik and Katerina Teksoz, WP No. 14/45.
Technical Assistance Reports and Policy Papers
"Budget Institutions in G-20 Countries - An Update," IMF Policy Paper, April 2014.
"Budget Institutions in G-20 Countries - Country Evaluations" IMF Policy Paper, April 2014.
'Israel: Reviewing the Fiscal Regime for Mining" Country Report 14/125.
"Russian Federation: Fiscal Transparency Evaluation," Country Report No. 14/134.
"Republic of Estonia: Technical Assistance Report-Revenue Administration Gap Analysis Program-The Value-Added Tax Gap," Country Report No. 14/133.
"Bolivia: Fiscal Transparency Assessment," Country Report No. 14/77.
Useful Links
Further Information
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Vitor Gaspar Appointed New Director of FAD
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Mr. Vitor Gaspar has been appointed the new Director of the Fiscal Affairs Department. He took up his new appointment on June 9, 2014. Previously, Mr. Gaspar served as the Minister of Finance of Portugal during 2011-2013. He was acting Director-General of the European Commission's Bureau of European Policy Advisers during 2007-2010 and Director-General of research at the European Central Bank from 1998-2004. He also held senior policy positions in Banco de Portugal, including most recently as Special Adviser. Mr. Gaspar holds a Ph.D and a post-doctoral agregado in economics from Universidade Nova de Lisboa; he also studied at Universidade Catolica Portuguesa.
FAD Receives Almost 150 Technical Assistance Requests During the Spring Meetings
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During the 2014 Spring Meetings of the IMF and the World Bank, FAD held meetings with 85 country delegations, half of which were led by the respective Ministers of Finance. Close to 150 technical assistance (TA) requests were received during these meetings. TA demand covered the entire spectrum of fiscal issues, with a focus on strengthening public financial management systems and revenue mobilization. In fragile states, TA demand concentrated on building and strengthening fiscal institutions. Several countries also expressed interest in subsidy reform. The Annual Meetings in October 2014 provide another opportunity for FAD and IMF member countries to discuss TA priorities.
April 2014 Fiscal Monitor - Public Expenditure Reform: Making Difficult Choices
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The spring 2014 edition of the IMF's Fiscal Monitor concludes that global fiscal risks are abating somewhat but remain elevated. Across country groups, fiscal policy should aim to rebuild policy space while strengthening the recovery and long-term growth prospects. The report also sets out the main elements needed for meaningful spending reform. First, ensure the sustainability of social spending and the public wage bill. Second, seek gains from better targeting and efficiency-enhancing rationalization. Third, mobilize appropriate institutional and political support.
Fifth IMF Fiscal Forum - The Transition to Normality: Implications for Fiscal Policy
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The fifth Fiscal Forum of the IMF was held in Washington, D.C. during the IMF Spring Meetings. The topic for this year's Forum was "The Transition to Normality: Implications for Fiscal Policy". Key themes included the near-term challenges for fiscal policy as interest rates move away from the zero lower bound and the necessary fiscal policies and structural reforms to put public finances on a stable path, while promoting growth, job creation and equity. Senior government officials from more than 40 advanced, emerging and developing economies participated. IMF Managing Director Christine Lagarde opened the Forum and Adam Posen (President, Peterson Institute) delivered the keynote speech. The Forum concluded with a roundtable moderated by Reuters Breakingviews Global Editor, Rox Cox, and included David Lipton (First Deputy Managing Director, IMF); Tim Adams (President, Institute of International Finance); Willem Buiter (Chief Economist, Citigroup); Alistair Darling (Former Chancellor of the Exchequer, UK); Jose De Gregorio, (Professor, University of Chile, Former Central Bank Governor and Minister of Economy); and Charles Evans (President, Federal Reserve Bank of Chicago).
IMF Lauches New Paper on Impact of Fiscal Policy on Inequality
IMF First Deputy Managing Director - David Lipton - launched FAD's paper, "Fiscal Policy and Income Inequality" on Thursday, March 13, at the Peterson Institute for International Economics (PIIE). The paper assesses trends in inequality and country experience with different fiscal instruments for redistribution. It also provides options for the reform of expenditure and tax policies to achieve distributive objectives consistent with fiscal sustainability. The presentation was followed by a discussion by Nancy Birdsall, (President of the Center for Global Development), and Professor Robert Z. Lawrence (PIIE non-resident Senior Fellow). Adam Posen (President, PIIE) moderated the event. FAD's new book - "Equitable and Sustainable Pensions: Challenges and Experience" was also launched at the event. The book provides both general considerations in designing equitable and sustainable pensions and the lessons from 12 country and regional studies.
FAD Launches New Paper on G-20 Budget Institutions
On May 20, 2014, FAD published a policy paper on Budget Institutions in G-20 Countries. The global financial crisis that began in 2008 resulted in an unprecedented increase in government debt and deficits in many G-20 countries. Well-designed and efficiently managed budget institutions can play a central role in the success of the fiscal adjustment efforts. The paper examines the progress these countries have made in strengthening their budget institutions since the crisis, analyzes the extent to which these institutions have impacted post-crisis fiscal performance, and identifies priorities for further institutional reform.
FAD Organizes Conference on Natural Resource Taxation
On March 3-5, FAD organized a conference on Natural Resource Taxation in the Andean Region. The conference was attended by delegations from Bolivia, Colombia, Ecuador and Peru. Participants discussed the design, implementation and evaluation of fiscal regimes for extractive industries (EI); exchanged experiences on the challenges they face in evaluating and administering fiscal regimes for EI; and learned about the work of the IMF on tax policy and tax administration for EI. The forum concluded with a round table on Natural Resources and Inclusive Growth with Mr. Miguel Castilla (Minister of Economy and Finance of Peru), Mr. David Lipton (IMF First Deputy Managing Director), and Mr. Daniel Kaufmann (President of the Revenue Watch Institute).
Fifth IMF-Japan High Level Tax Conference for Asian Countries
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The fifth IMF-Japan High-Level Tax Conference for Asian Countries was held in Tokyo from April 21 to 23, 2014. This event was organized jointly by FAD and Japan's Ministry of Finance (MOF), and with extensive support from the Fund's Office in Tokyo. Topics discussed included energy taxation, regional harmonization of tax systems, reform issues and challenges in tax administration. It was attended by 37 senior officials from 19 countries in Asia. Deputy Managing Director Shinohara delivered the opening address. The conference was financed by the Japan Administered Account for Selected IMF Activities (JSA).
FAD Co-Hosts Conference on Tax Coordination Issues in West Africa
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Issues in tax coordination and competition were the subject of a seminar co-organized with the WAEMU Commission, and attended by the heads of tax and customs administrations, directors of tax legislation of WAEMU's eight member states, international experts, and representatives from the ECOWAS Commission. The conference was opened by Senegal's Minister of Finance, Mr. Amadou Ba, and closed by the WAEMU Commissioner for Economic and Tax Affairs, Mr. Abdallah Boureima. The seminar was supported by the IMF's Topical Trust Fund in Tax Policy and Administration.
“Reforming Fiscal Governance in the EU: Operational Issues and Options.” Conference, Paris, April 18, 2014
The IMF Fiscal Affairs Department and Office in Europe gathered experts from academia, international bodies, and national agencies of European Union (EU) countries for a one-day EU conference on fiscal governance. The aim of the conference was to take stock of the recent reforms of rules-based fiscal frameworks at the EU and national levels, and to explore a number of concrete operational issues related to their implementation.
FAD Co-Hosts Conference on Green Economy
FAD co-hosted a conference “Reforming Fossil Fuel Subsidies for an Inclusive Green Economy” with the UN Environment Program (UNEP), the Gesellschaft fur Internationale Zusammenarbeit (GIZ), and the Global Subsidies Initiative (GSI) at the UNEP headquarters in Nairobi, on April 28-29. About 80 participants attended the conference, mostly representatives from environment and finance ministries from developing countries.
FAD in the News
"IMF Urges Nations to Cut Debt Casting Shadows on World Economy," - Bloomberg.
"Rich nations' debt has stabilized, public investment needed," - Reuters.
"IMF Report: Fiscal Risks Abating; Expenditure Reforms Key," - Market News International.
"IMF Warns on Rising Debt Levels," - Financial Times.
"IMF Says Budget Fall Fastest of All," - Australian Financial Review.
"The Secrets of Pakistan's Economic Upsurge," - FT Beyondbrics.
"IMF Gives Vote of Approval to Renzi's Blueprint," - ANSA.
"IMF Sees Rising Fiscal Vulnerabilities in Emerging Markets," - Xinhua.
"We Expect the ECB to Solve the Problem of Deflation as Soon as Possible," - El Economista
Recent Blogs
"Meeting Rising Pressures to Address Income Inequality - A User's Guide," Sanjeev Gupta and Mick Keen, iMFDirect.
"Taxing, Spending, and Inequality -"What is to be Done?" Sanjeev Gupta, Ben Clements, David Coady, and Ruud de Mooij - VoxEU.
"Fiscal Adjustment and Growth: Beware of the Credit Constraints," Emanuele Baldacci, Sanjeev Gupta, and Carlos Mulas-Granados, VoxEU.
"The Future of the State Revisited: Reforming Public Expenditure," Sanjeev Gupta and Martine Guerguil, iMFDirect.
"Public Finances Are on the Mend, but No Clean Bill of Health," Sanjeev Gupta and Martine Guerguil,iMFDirect.
"Revenue Substitution in Resource Rich Economies: Evidence From a New Dataset," Ernesto Crivelli and Sanjeev Gupta, VoxEU.
FAD Videos
Fiscal Monitor: Public Expenditure Reform: Making Difficult Choices.
IMF Fiscal Forum: The Transition to Normality; Implications for Fiscal Policy.
Fiscal Forum Opening Remarks: Christine Lagarde - IMF Managing Director - Opening Remarks.
Fiscal Forum Keynote Speech: "Monetary Policy Normalization - Challenges for Fiscal Policy",
Fiscal Forum High-Level Panel: "Managing the Transition to Normality: Implications for Fiscal Policy".
Career Opportunities
FAD seeks talented professionals with a background in public finance, to work on macro-fiscal policy issues and to provide technical assistance advice to IMF member countries on PFM, tax 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.