Designing a Fiscal Framework for a Prospective Commodity Producer : Options for Lebanon

Information about Middle East Oriente Medio

Explore other countries and regions »

Designing a Fiscal Framework for a Prospective Commodity Producer : Options for Lebanon
Get Code Buy
Journal Issue
Share
Volume/Issue:
2014/193
Series:
IMF Working Papers
Author(s):
Mariusz Jarmuzek, Diego Mesa Puyo, and Najla Nakhle
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
October 2014
DOI:
http://dx.doi.org/10.5089/9781484346143.001
ISBN:
9781484346143
ISSN:
1018-5941
Page:
33
Lebanon is expected to have gas resources in its Mediterranean basin, and these could turn the country into a natural gas producer over the next decade. Lebanon's economy and institutions will thus need to adapt to the challenges and opportunities that such change will bring. In this paper, we address how Lebanon's fiscal framework will need to be reformulated to take into account potential resource revenue. Designing a fiscal regime appropriately is an absolute prerequisite to make sure the government can receive a fair share of the resources while investors face appropriate incentives to invest and develop the sector. This step should be followed by setting macro-fiscal anchors and supporting institutions. The prospective framework should initially be focused on ensuring fiscal sustainability and intergenerational equity, given the estimated relatively short horizon of Lebanon's gas resources. Strong institutional arrangements also need to underpin the prospective framework, to ensure that the pace of resource wealth's use is set in line with Lebanon's capacity constraints.
Article

Designing a Fiscal Framework for a Prospective Commodity Producer

Author(s):
Mariusz Jarmuzek, Diego Mesa Puyo, and Najla Nakhle
Published Date:
October 2014
    Share
    • ShareShare
    Information about Middle East Oriente Medio

    Explore other countries and regions »

    Show Summary Details
    You are not logged in and do not have access to this content. Please login or, to subscribe to IMF eLibrary, please click here

    Other Resources Citing This Publication

    look up citations for this publication in google scholar