Sweden: Staff Report for the 2000 Article IV Consultation
IMF Staff Country Reports, September 7, 2000
Source details
- Canonical URL
- Sweden: Staff Report for the 2000 Article IV Consultation
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Bibliographic details
- Published: September 7, 2000
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451835878.002
Overview
- The authorities' medium-term fiscal strategy is based on restraining expenditures through nominal ceilings and maintaining a fiscal surplus target of 2 percent of gross domestic product (GDP), measured as an average over the cycle.
- The mission praised the authorities’ medium-term fiscal strategy.
IMF staff assessment and quantitative finding
- Assuming that a structural surplus of 2 percent is maintained and that policy slippages on expenditures are avoided, the room for tax cuts is about 4 percent of GDP over the 2001–03 period, considerably more than envisaged by the authorities.
Policy implications and recommendations
- Maintain nominal expenditure ceilings to sustain the medium-term fiscal strategy.
- Preserve a structural surplus of 2 percent of GDP, measured as an average over the cycle, to create fiscal space.
- Avoid policy slippages on expenditures to realize the potential fiscal room for tax reductions.
- Consider using the estimated fiscal room of about 4 percent of GDP over 2001–03 for tax policy adjustments, contingent on adherence to the surplus target and expenditure discipline.
Notes
- Included with the Staff Report is the text of Public Information Notice No. 00/74 IMF Concludes Article IV Consultation with Sweden.
Source: Sweden: Staff Report for the 2000 Article IV Consultation (IMF Staff Country Reports).
Content in this bundle
- Sweden: Staff Report for the 2000 Article IV Consultation - ISCR/00/118