IMF Staff Country Reports

Paraguay: Selected Issues

Publication Date:

June 15, 2010

Electronic Access:

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Summary:

This technical paper focuses on the challenges faced by Paraguay’s budget resources. Paraguay’s government should adopt a forward-looking fiscal strategy. The strategy’s main goals should be to contain budget dependence on Itaipu revenues, preserve fiscal discipline, and allow for the gradual and sustainable transformation of the envisaged, yet temporary, windfall into other forms of financial, physical, and human capital. The creation of a special fund could help mobilize public support for saving part of the windfall and building a buffer for the future.

Series:

Country Report No. 2010/170

Subject:

Central bank policy rate Financial regulation and supervision Financial services Income and capital gains taxes Operational risk Revenue administration Taxes Value-added tax

Notes:

Also Available in Spanish