Macro-Fiscal Management Practices in Eastern and Southern Africa

IMF Working Papers, February 5, 2021

Source details

Canonical URL: Macro-Fiscal Management Practices in Eastern and Southern Africa

Examines the institutional arrangements of the macro-fiscal function in 16 African countries.
Most ministries of finance (MoFs) have established a macro-fiscal department or unit, but their functions, size, structure and outputs vary considerably.
Based on a survey, presents data on staff size, functional scope and the forecasting performance of macro-fiscal departments and identifies common challenges in the countries reviewed.
Some MoFs perform many macro-fiscal functions, but actions of various kinds are needed to strengthen their macro-fiscal departments.
Provides guidance for policy-makers in the region for enhancing the quality and scope of macro-fiscal outputs.

Existence and variation:
- Most MoFs have a macro-fiscal department or unit.
- Functions, size, structure and outputs of these departments vary considerably across the 16 countries.
Survey-based evidence:
- Data presented on staff size, functional scope and forecasting performance of macro-fiscal departments.
Common challenges identified across countries reviewed:
- Variability in capacity and outputs of macro-fiscal units.
- Need for strengthening to improve forecasting performance and broaden functional scope.
Role and outputs:
- Some MoFs perform many macro-fiscal functions, suggesting heterogeneity in responsibilities and capabilities across the region.

Strengthen macro-fiscal departments through a range of actions (paper provides guidance for policy-makers).
Enhance the quality and scope of macro-fiscal outputs, including:
- Improving staff capacity and functional coverage.
- Strengthening forecasting performance and methodological approaches.
- Addressing institutional and organizational differences to promote consistent macro-fiscal practices.