Old Curses, New Approaches? Fiscal Benchmarks for Oil-Producing Countries in Sub-Saharan Africa
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Buoyant oil prices have allowed oil-producing countries in sub-Saharan Africa (SSA OPCs) to increase oil exports and fiscal revenues, providing them with resources necessary to address the pressing social needs. To preclude another boom-bust cycle, this paper advocates the definition of a fiscal benchmark anchored in sustainability grounds, following Leigh- Olters (2006). The difference between current primary deficits and those that could be maintained after oil reserves are exhausted represent an indication of the degree to which fiscal positions will have to be adjusted-either gradually, while the overall balances remain in surplus, or abruptly, once oil revenues begin to dwindle.
Series:
Working Paper No. 2007/107
Subject:
Expenditure Fiscal stance Oil Oil prices Oil, gas and mining taxes
English
Publication Date:
May 1, 2007
ISBN/ISSN:
9781451866711/1018-5941
Stock No:
WPIEA2007107
Pages:
42
Please address any questions about this title to publications@imf.org