Evaluating Fiscal Rules for Lesotho: Kingdom of Lesotho

December 6, 2022

Preview Citation

Format: Chicago

Yibin Mu. Evaluating Fiscal Rules for Lesotho: Kingdom of Lesotho, (USA: International Monetary Fund, 2022) accessed September 18, 2024

Summary

A key challenge for Lesotho is the downward rigidity in public expenditure—which increases when SACU transfers are buoyant but fails to be pared back when they fall. Fiscal rules would be of value in Lesotho to help provide constraints on spending and resist political pressure to overspend, while embedding fiscal responsibility within the country’s macro-fiscal framework and ensuring debt sustainability. This paper evaluates options for fiscal rules for Lesotho, discusses the institutional framework required to help underpin a sound fiscal-rule framework, posits a possible fiscal-rule framework for Lesotho, and offers a roadmap to introduce the framework.

Subject: International organization, Monetary policy

Keywords: Expenditure, Fiscal Policy, Fiscal Rules, Public Financial Management

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2022/001
Stock No:

SIPEA2022001
ISBN:

9798400226014
ISSN:

2958-7875

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