Strategies for Fiscal Consolidation in the Post-Crisis World


Mauricio Villafuerte ; Cemile Sancak ; Jan Gottschalk ; S. M. Ali Abbas ; Olivier Basdevant ; Ricardo Velloso ; Fuad Hasanov ; Greetje Everaert ; Stephanie Eble ; Junhyung Park

Publication Date:

September 17, 2010

Electronic Access:

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

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.


In response to the global financial crisis, governments provided substantial support to the financial and other key sectors. Although this cushioned the adverse effects of the crisis, it is necessary now to articulate a strategy to ensure the sustainability of public finances. This paper discusses the scale and composition of fiscal adjustment that will need to occur once the recovery is securely under way. Although specific country-level circumstances will influence the composition of the adjustment and its political feasibility, in many cases restoring fiscal sustainability will require reforms to reduce spending and increase tax revenue.


Departmental Paper No. 2010/008



Publication Date:

September 17, 2010



Stock No:




Please address any questions about this title to