{
  "title": "Securing Fiscal Discipline and Credibility in WAEMU: WAEMU",
  "publication": "Selected Issues Papers, May 17, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2024/05/16/securing-fiscal-discipline-and-credibility-in-waemu-548973",
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  "summary": "Fiscal consolidation and the reintroduction of the WAEMU fiscal framework is crucial for maintaining debt sustainability, external viability, and financial stability.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Fiscal consolidation and the reintroduction of the WAEMU fiscal framework is crucial for maintaining debt sustainability, external viability, and financial stability.\n- The 3 and 70 percent of GDP deficit and debt ceilings envisaged by the expired rule remain appropriate.\n- Addressing the stock-flow adjustments will help rebuild fiscal buffers.\n- Convergence to a fiscal deficit of 3 percent of GDP should be ensured by 2025— barring exceptional circumstances— with focus on domestic revenue mobilization, while controlling expenditure."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Reintroduce the WAEMU fiscal framework with the 3 percent of GDP deficit ceiling and the 70 percent of GDP debt ceiling.\n- Address stock-flow adjustments to rebuild fiscal buffers.\n- Ensure convergence to a fiscal deficit of 3 percent of GDP by 2025, except under exceptional circumstances, emphasizing domestic revenue mobilization and expenditure control.\n- Revamp the fiscal rule to include:\n  - A credible debt correction mechanism.\n  - Exogenous escape clauses."
    },
    {
      "heading": "Subjects and keywords emphasized",
      "content": "- Debt sustainability\n- Expenditure\n- External debt\n- Fiscal policy\n- Fiscal rules\n- Fiscal space\n- International organization\n- Monetary policy\n- Public debt\n- credibility in WAEMU, debt, Debt sustainability, deficit ceiling, deficit rule, deficit target, fiscal consolidation, fiscal rules, Fiscal space, Global, monetary union, stock flow adjustment, stock-flow adjustment\n\nSource: Securing Fiscal Discipline and Credibility in WAEMU: WAEMU, By Ljubica Dordevic and Olivia Y Ibrahim, May 17, 2024.\n\n---\n\n Content in this bundle\n\n- 1.   Debt Dynamics\n  - 1.   Debt Dynamics (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1.   Debt Dynamics (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2024/05/16/securing-fiscal-discipline-and-credibility-in-waemu-548973"
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    "Authors: Ljubica Dordevic, Olivia Y Ibrahim",
    "Published: May 17, 2024",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798400275395.018",
    "Fiscal consolidation and the reintroduction of the WAEMU fiscal framework is crucial for maintaining debt sustainability, external viability, and financial stability.",
    "The 3 and 70 percent of GDP deficit and debt ceilings envisaged by the expired rule remain appropriate.",
    "Addressing the stock-flow adjustments will help rebuild fiscal buffers.",
    "Convergence to a fiscal deficit of 3 percent of GDP should be ensured by 2025— barring exceptional circumstances— with focus on domestic revenue mobilization, while controlling expenditure.",
    "Reintroduce the WAEMU fiscal framework with the 3 percent of GDP deficit ceiling and the 70 percent of GDP debt ceiling.",
    "Address stock-flow adjustments to rebuild fiscal buffers.",
    "Ensure convergence to a fiscal deficit of 3 percent of GDP by 2025, except under exceptional circumstances, emphasizing domestic revenue mobilization and expenditure control.",
    "Revamp the fiscal rule to include:",
    "Debt sustainability",
    "Expenditure",
    "External debt",
    "Fiscal policy",
    "Fiscal rules",
    "Fiscal space",
    "International organization",
    "Monetary policy",
    "Public debt",
    "credibility in WAEMU, debt, Debt sustainability, deficit ceiling, deficit rule, deficit target, fiscal consolidation, fiscal rules, Fiscal space, Global, monetary union, stock flow adjustment, stock-flow adjustment",
    "**1.   Debt Dynamics**"
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