Aid and Fiscal Management

June 1, 2002

Disclaimer: 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. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper focuses on the macroeconomic aspects of fiscal management in aid-receiving countries. Despite the declining share of aid in budgets of donor countries, aid continues to play an important role in many developing countries. The paper first discusses the implications of aid in the economy as a whole and highlights the possibility of Dutch-disease effects of aid. Second, it discusses the implications of aid for short-term fiscal policy management?in particular, how actual or anticipated changes in aid receipts should be reflected in government spending.

Subject: Consumption, Expenditure, Fiscal policy, National accounts, Public financial management (PFM), Real exchange rates, Revenue administration

Keywords: aid disbursement, Consumption, disbursement, economic growth, expenditure side, fiscal management, fiscal policy management, Foreign aid, goods, goods sector, investment, nontradable goods, Sub-Saharan Africa, WP

Pages:
34
Volume:
2002
DOI:
https://doi.org/10.5089/9781451853612.001
Issue:
112
Series:
Working Paper No. 2002/112
Stock No:
WPIEA1122002
ISBN:
9781451853612
ISSN:
1018-5941

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