The Bahamas : Selected Issues

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

May 14, 2018

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Selected Issues paper makes the case for a rules-based fiscal framework for The Bahamas and discusses its design, calibration, and implementation. The IMF staff recommends adopting a headline deficit ceiling and a cap on current expenditure growth, both calibrated to guide debt toward a suitable medium-term anchor while allowing room for stabilization. A headline deficit target is simpler to communicate and monitor than a structural balance rule. Such a framework would allow expanding capital spending, up to the limit provided by the deficit ceiling, in the event of improvements in revenue performance. Moreover, in line with best practices, the framework should be anchored around a pre-defined medium-term debt target that will guide the calibration of proposed operation rules.

Series:

Country Report No. 18/119

Subject:

English

Publication Date:

May 14, 2018

ISBN/ISSN:

9781484355176/1934-7685

Stock No:

1BHSEA2018002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

Please address any questions about this title to publications@imf.org