Do Debt-Service Savings and Grants Boost Social Expenditures?

Author/Editor:

Alun H. Thomas

Publication Date:

July 1, 2006

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:

This paper evaluates whether debt relief and grants can boost social expenditures in lowincome countries. It finds that declines in debt-service help raise social expenditures, but no relationship between grants and social expenditures. Moreover, since the mid-1980s, lowincome countries have managed to fully insulate social expenditures from the effects of budgetary tightening. The magnitude of the impact of these effects on social expenditures, however, is dwarfed by the resources needed to enable these countries to reach the Millennium Development Goals.

Series:

Working Paper No. 06/180

Subject:

English

Publication Date:

July 1, 2006

ISBN/ISSN:

9781451864403/1018-5941

Stock No:

WPIEA2006180

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

20

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