Fiscal Management of Scaled-Up Aid
IMF Working Papers, September 1, 2007
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- Fiscal Management of Scaled-Up Aid
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Bibliographic details
- Authors: Sanjeev Gupta, Duncan P Last, Isabell Adenauer, Kevin Fletcher, Gerd Schwartz, Shamsuddin Tareq, Richard I Allen
- Published: September 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867862.001
Overview
- Authors: Sanjeev Gupta, Duncan P Last, Isabell Adenauer, Kevin Fletcher, Gerd Schwartz, Shamsuddin Tareq, Richard I Allen
- Publication date: September 1, 2007
- Series: Working Paper No. 2007/222
- Issue: 222
- Volume: 2007
- Pages: 64
- DOI: https://doi.org/10.5089/9781451867862.001
- ISBN: 9781451867862
- ISSN: 1018-5941
- Note: "This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy."
Key findings and analysis
- Role of fiscal policy and fiscal institutions:
- The paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid.
- Medium-term frameworks and resource planning:
- In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans.
- Expenditure smoothing:
- There is merit in smoothing expenditures over time so that all programs are adequately funded.
- Wage-bill ceilings:
- The paper argues that wage-bill ceilings should be used in Fund-supported programs only in exceptional cases.
- Public financial management (PFM) reforms:
- The paper discusses basic reforms for strengthening public financial management systems for effective utilization of scaled-up aid flows.
Policy recommendations
- Anchor fiscal policy formulation in medium-term frameworks that incorporate longer-term views of resource availability and spending plans.
- Smooth expenditures over time to ensure adequate funding across programs.
- Use wage-bill ceilings in Fund-supported programs only in exceptional cases.
- Strengthen basic public financial management systems to enable effective utilization of scaled-up aid flows.
Subjects and keywords
- Subject: Budget execution and treasury management, Budget planning and preparation, Expenditure, Fiscal accounting and reporting, Public financial management (PFM)
- Keywords: accounting system, annual budget, country authorities, fiscal policy, PFM system, WP
Source: IMF Working Papers — "Fiscal Management of Scaled-Up Aid", September 1, 2007, Working Paper No. 2007/222.