Fiscal Monitor, October 2021

Fiscal Monitor, October 2021

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Fiscal policy should remain nimble and strengthen its medium-term frameworks as countries face highly uncertain and differentiated prospects.
Vaccination has saved lives and is helping fuel a nascent recovery, but risks are elevated amidst new virus variants, high debt, and poverty.
In advanced economies, the shift in fiscal support toward medium-term packages to “build back better” will have overall positive effects globally.
Emerging markets and low-income developing countries face a more challenging outlook, with permanent economic scarring and revenue losses.
These countries need international support to increase vaccine availability and financing to achieve the Sustainable Development Goals.

Many countries still need fiscal support to protect lives and livelihoods while facing questions on elevated debt and gross financing needs.
Guidance for balancing near-term support with signaling long-run debt sustainability:
- Avoid withdrawing fiscal support too early while signaling credible long-term adjustment.
- Commit to future deficit reduction through several instruments:
- Undertaking structural fiscal reforms (such as pension reform or subsidies reform).
- Pre-legislating changes to taxes or spending.
- Committing to fiscal rules that lead to deficit reduction in the future.
Evidence and outcomes highlighted:
- Countries that follow debt rules manage to reduce debt faster than other countries.
- Fiscal rules should provide enough flexibility to spend in times of need.
- Governments that commit to sound public finances and achieve high levels of fiscal transparency reap meaningful benefits:
- Their budgets are more credible.
- Their announcements are better perceived by the media.
- They pay lower interest rates on their debt.

Source: Fiscal Monitor, October 2021

Chapter 2
- Chapter 2 (Markdown version)
- Chapter 2 (PDF)
Executive Summary
- Executive Summary (Markdown version)
- Executive Summary (PDF)
Dataset overview
- Dataset overview (Markdown version)
- Dataset overview (XLSX)
CHAPTER 2 Strengthening the Credibility of Public Finances
- CHAPTER 2 Strengthening the Credibility of Public Finances (Markdown version)
- CHAPTER 2 Strengthening the Credibility of Public Finances (PDF)
Foreword
- Foreword (Markdown version)
- Foreword (PDF)
Methodological and Statistical Appendix. IMF Fiscal Monitor, October 2021
- Methodological and Statistical Appendix. IMF Fiscal Monitor, October 2021 (Markdown version)
- Methodological and Statistical Appendix. IMF Fiscal Monitor, October 2021 (PDF)
Full Report
- Full Report (Markdown version)
- Full Report (PDF)
Chapter 1: Policy in An Uncertain Recovery
- Chapter 1: Policy in An Uncertain Recovery (Markdown version)
- Chapter 1: Policy in An Uncertain Recovery (PDF)