## Strengthening the WAEMU Regional Fiscal Framework

_IMF Working Papers, March 4, 2022_

## Source details

**Canonical URL:** [Strengthening the WAEMU Regional Fiscal Framework](https://www.imf.org/en/publications/wp/issues/2022/03/04/strengthening-the-waemu-regional-fiscal-framework-513691)

## Other formats

- [Markdown version](/en/publications/wp/issues/2022/03/04/strengthening-the-waemu-regional-fiscal-framework-513691/index.md)
- [Structured JSON version](/en/publications/wp/issues/2022/03/04/strengthening-the-waemu-regional-fiscal-framework-513691/index.json)
- [Bundle manifest](/en/publications/wp/issues/2022/03/04/strengthening-the-waemu-regional-fiscal-framework-513691/bundle-manifest.json)

## Bibliographic details
- Authors: Antonio David, Alexandre Nguyen-Duong, Hoda Selim
- Published: March 4, 2022
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400204357.001

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### Summary assessment
- The paper assesses the adequacy and effectiveness of the WAEMU fiscal framework along three pillars that have proven to effectively support fiscal discipline in monetary unions:
  - common fiscal rules (including adequacy of numerical ceilings as well as elements of design and enforcement),
  - shared public financial management systems, and
  - coordination mechanisms for decentralized fiscal policies.
- The analysis undertakes a calibration of regional debt and fiscal deficit ceilings taking into account different macroeconomic tradeoffs and risks.
- Conclusion: numerical ceilings that prevailed before the suspension of the fiscal rules remain adequate and strike the right balance between growth and fiscal sustainability.
- The paper proposes reform options to strengthen the WAEMU regional fiscal surveillance framework, with a view to more effectively supporting fiscal discipline.

### Key findings and projections
- Numerical ceilings in place before the suspension of the fiscal rules are assessed as adequate for balancing growth and fiscal sustainability.
- Calibration of regional debt and fiscal deficit ceilings is performed considering different macroeconomic tradeoffs and risks (details and quantitative calibrations are in the full paper).

### Policy recommendations and reform options
- Strengthen the WAEMU regional fiscal surveillance framework to more effectively support fiscal discipline.
- Improve design and enforcement elements of common fiscal rules.
- Enhance shared public financial management (PFM) systems.
- Reinforce coordination mechanisms for decentralized fiscal policies.

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## Content in this bundle

- **Working Paper**
  - [Working Paper (Markdown version)](/-/media/files/publications/wp/2022/english/wpiea2022049-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [Working Paper (PDF)](/-/media/files/publications/wp/2022/english/wpiea2022049-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2022/03/04/strengthening-the-waemu-regional-fiscal-framework-513691_