Fiscal Policy in Nigeria : Any Role for Rules?

Author/Editor:

Thomas Baunsgaard

Publication Date:

July 1, 2003

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:

Fiscal policy in oil-producing countries can be profoundly affected by oil revenue uncertainty and volatility. Policy formulation should factor in the exhaustibility of the natural resources and aim at reducing oil revenue volatility passed on to the economy. Past fiscal policy in Nigeria has not been successful in this regard, since both revenue and expenditure have been highly volatile, to a large extent reflecting oil price developments. The paper discusses the role an appropriately designed fiscal rule, nested within the long-run sustainable use of oil revenue, could have in providing a more stable framework for fiscal policy formulation. It also highlights practical implementation and transitional issues.

Series:

Working Paper No. 03/155

Subject:

English

Publication Date:

July 1, 2003

ISBN/ISSN:

9781451857337/1018-5941

Stock No:

WPIEA1552003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

37

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