## Assessing Fiscal Space: An Update and Stocktaking

## Source details

**Canonical URL:** [Assessing Fiscal Space: An Update and Stocktaking](https://www.imf.org/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space/bundle-manifest.json)

## Bibliographic details
- Published: June 15, 2018

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### Purpose and scope
- Reviews the experience with the fiscal space assessment framework that was piloted during 2017–18.
- Framework developed in response to the need to provide a more systematic approach to assessing fiscal space in the Fund’s surveillance.
- Designed to inform the availability of fiscal space over a 3 to 4 year horizon for discretionary action, not the optimality of its use.

### Definition and framework
- Fiscal space narrowly defined as the room for undertaking discretionary fiscal policy relative to existing plans without endangering market access and debt sustainability.
- A new four-stage framework for assessment was proposed in 2016.
- The framework and operational definition were discussed informally by the Board in June, and a Board paper “Assessing Fiscal Space: An Initial Consistent Set of Considerations” incorporating Directors’ views was published in December.

### Pilot and coverage
- The framework was piloted in the Article IV consultations of 34 advanced economies and emerging markets.
- Pilot coverage comprised almost 80 percent of global GDP in PPP terms.

### Key considerations emphasized
- Availability of fiscal space does not necessarily mean that it should be used or should not be further expanded.
- The tool is intended to inform the availability of discretionary fiscal space over a 3 to 4 year horizon.

_Assessing Fiscal Space: An Update and Stocktaking, June 15, 2018 — https://www.imf.org/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space_

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2018/pp041118assessing-fiscal-space-update-and-stocktaking.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2018/06/15/pp041118assessing-fiscal-space_