Operational Aspects of Fiscal Policy in Oil-Producing Countries
IMF Working Papers, October 1, 2002
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- Operational Aspects of Fiscal Policy in Oil-Producing Countries
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Bibliographic details
- Authors: Steven A Barnett, Rolando Ossowski
- Published: October 1, 2002
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858884.001
Challenges facing oil-producing countries
- Oil revenue is exhaustible, volatile, and uncertain.
- Oil revenue largely originates from abroad.
- These characteristics create fiscal-policy design and assessment challenges unique to oil-producing countries.
Main findings and policy guidelines
- The non-oil balance should feature prominently in the formulation of fiscal policy.
- The non-oil balance should generally be adjusted gradually.
- Governments should strive to accumulate substantial financial assets over the period of oil production.
- Where necessary, strategies should aim at breaking procyclical fiscal responses to volatile oil prices.
Keywords and subject areas (as presented)
- Subjects: Commodities, Expenditure, Fiscal policy, Fiscal stance, Oil, Oil prices, Oil, gas and mining taxes, Prices, Taxes
- Keywords: exchange rate, fiscal policy, fiscal policy decision, fiscal policy discussion, fiscal policy response, fiscal sustainability, gas and mining taxes, government spending, non-oil deficit, nonrenewable resources, Oil, oil deficit, oil price, oil price decline, oil price development, oil price volatility, Oil prices, oil revenue, oil-producing countries, petroleum, price movement, spot oil price, understanding fiscal policy development, WP
Operational Aspects of Fiscal Policy in Oil-Producing Countries, by Steven A Barnett and Rolando Ossowski, October 1, 2002.
Content in this bundle
- Operational Aspects of Fiscal Policy in Oil-Producing Countries - WP/02/177