Fiscal Objectives in the Post IMF Program World: The Case of Albania

 
Author/Editor: Jonas, Jiri
 
Publication Date: March 01, 2010
 
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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: The paper discusses the challenges facing Albania's fiscal policy following the graduation from the IMF programs. It argues that Albania's public debt remains too high and needs to be reduced. Strengthening the fiscal framework, including by introducing a numerical fiscal rule, could help achieve this objective. The paper discusses two alternative rules, with the objective of achieving a gradual decline in the public debt ratio. One rule would limit nominal expenditure growth, with a correction mechanism to guard against revenue slippages and other shocks. An alternative rule would limit the growth in nominal public debt.
 
Series: Working Paper No. 10/77
Subject(s): Albania | Debt reduction | Debt sustainability | Fiscal policy | Government expenditures | Post-program monitoring | Public debt | Tax administration

Author's Keyword(s): Fiscal policy | fiscal rules | debt sustainability
 
English
Publication Date: March 01, 2010
Format: Paper
Stock No: WPIEA2010077 Pages: 29
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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