Fiscal Sustainability and Resource Mobilization in the Dominican Republic

IMF Working Papers, January 1, 2003

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Fiscal Sustainability and Resource Mobilization in the Dominican Republic

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Bibliographic details

• Authors: Oscar E Melhado Orellana
• Published: January 1, 2003
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451843767.001

Overview

• Examines fiscal sustainability and resource mobilization in the Dominican Republic.
• Central conclusion: the fiscal position appears to be sustainable, if resource mobilization is strengthened.
• Primary caution: if expenditure continues to rise (relative to GDP), without any further fiscal adjustment, indicators of sustainability would begin to deteriorate.
• Emphasizes maintaining an appropriate mix between additional financing and fiscal adjustment to avoid an excessive rise in the future debt burden.

Key Findings

• Fiscal position currently appears sustainable contingent on stronger resource mobilization.
• Rising expenditure (relative to GDP) without fiscal adjustment would lead to deteriorating sustainability indicators.
• Future debt burden depends critically on the balance between additional financing and fiscal adjustment.

Policy Recommendations

• Strengthen resource mobilization measures to support fiscal sustainability.
• Maintain an appropriate mix between:
  • additional financing, and
  • fiscal adjustment

to prevent an excessive increase in the future debt burden.

Risks and Scenarios

• Scenario: Continued expenditure growth relative to GDP with no fiscal adjustment
  • Expected outcome: deterioration in sustainability indicators and rising future debt burden.
• Mitigation: Implement resource mobilization and fiscal adjustment measures to stabilize debt dynamics.

Scope and Subjects

• Subject: Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Public debt, Revenue administration
• Keywords: bank financing, commercial bank financing, debt ceiling, debt dynamics of the country, debt indicator, debt profile, Dominican Republic, expenditure program, expenditure side, Fiscal stance, fiscal sustainability, GDP, government financing, real interest rate, resource mobilization, tax, trade tax, VAT, Western Hemisphere, WP

Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-sustainability-and-resource-mobilization-in-the-dominican-republic-16271

Content in this bundle

• Fiscal Sustainability and Resource Mobilization in the Dominican Republic - WP/03/19
  • Fiscal Sustainability and Resource Mobilization in the Dominican Republic - WP/03/19 (Markdown version)
  • Fiscal Sustainability and Resource Mobilization in the Dominican Republic - WP/03/19 (PDF)