Ms. Era Dabla-Norris, Ruud de Mooij, Andrew Hodge, Jan Loeprick, Dinar Prihardini, Ms. Alpa Shah, Sebastian Beer, Sonja Davidovic, Arbind M Modi, and Fan Qi
Digitalization in Asia is pervasive, unique, and growing. It stands out by its sheer scale, with internet users far exceeding numbers in other regions. This facilitates e-commerce in markets that are large by international standards, supported by innovative payment systems and featuring major corporate players, including a number of large, home-grown, highly digitalized businesses (tech giants) that rival US multinational enterprises (MNEs) in size. Opportunity for future growth exists, as a significant population share remains unconnected.
International Monetary Fund. Asia and Pacific Dept
This 2019 Article IV Consultation with India discusses that India has been among the world’s fastest-growing economies in recent years, lifting millions out of poverty. However, growth slowed to a six-year low in the first half of 2019, with both consumption and investment decelerating owing to weak, especially rural, income growth, stresses in the nonbank financial sector, and corporate and environmental regulatory uncertainty. On the external sector, following a rise in vulnerabilities in 2018, stability has returned, anchored by high foreign reserve buffers and a modest current account deficit. With its strong mandate, the new government has an opportunity to reinvigorate the reform agenda aimed at boosting inclusive and sustainable growth. In the near term, given the cyclical weakness of the economy, monetary policy should maintain an easing bias at least until the projected recovery takes hold. Fiscal stimulus should be avoided given fiscal space at risk and revenue losses from the recent corporate income tax rate cut should be offset.
Although the future extent and effects of global climate change remain uncertain, the expected damages are not zero, and risks of serious environmental and macroeconomic consequences rise with increasing atmospheric greenhouse gas concentrations. Despite the uncertainties, reducing emissions now makes sense, and a carbon tax is the simplest, most effective, and least costly way to do this. At the same time, a carbon tax would provide substantial new revenues which may be badly needed, given historically high debt-to-GDP levels, pressures on social security and medical budgets, and calls to reform taxes on personal and corporate income. This book is about the practicalities of introducing a carbon tax in the United States, set against the broader fiscal context. It consists of thirteen chapters, written by leading experts, covering the full range of issues policymakers would need to understand, such as the revenue potential of a carbon tax, how the tax can be administered, the advantages of carbon taxes over other mitigation instruments and the environmental and macroeconomic impacts of the tax. A carbon tax can work in the United States. This volume shows how, by laying out sound design principles, opportunities for broader policy reforms, and feasible solutions to specific implementation challenges.
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper describes the current tax system in Bhutan and suggests options for tax policy reform. Though significant hydropower revenues are expected in the medium term as major projects come on-stream, reforms to the existing tax system in the interim will generate fiscal room and prevent recourse to domestic debt to finance development needs. Key reforms include reducing tax exemptions in the near term and introduction of value-added tax in the medium term. The paper also analyzes the adequacy of international reserves in Bhutan using a customized risk-weighted metric. The results indicate that Bhutan’s reserve levels are ample.
This paper evaluates Pakistan’s First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) and a Request for Waiver and Modification of Performance Criteria. Developments in October 2001–January 2002 indicate satisfactory progress towards the program’s macroeconomic objectives, although growth prospects had to be scaled down and tax revenue was lower than targeted. All but two quantitative and structural performance criteria for end-December 2001 were met. The authorities are taking corrective measures that should deliver the revised macroeconomic targets for 2001/02 provided regional tensions ease in the near future.
This paper describes economic developments in India during the 1990s. Since late 1993/94, economic activity has expanded rapidly. Fiscal policy was relaxed substantially in 1993/94, a move that was only partly reversed in 1994/95. Like some other emerging markets, India experienced a surge of capital inflows, which contributed to a loosening of monetary conditions, notwithstanding efforts by the Reserve Bank to tighten monetary policy. With increased confidence and greater access to foreign financing, private investment has increased sharply. On the structural side, the authorities have continued to press ahead with reforms in a number of areas.
This paper presents a report on existing international banking and credit facilities in the Economic Commission for Asia and the Far East (ECAFE) region. The report presents a background formation on the importance of intraregional trade and payments, the exchange systems of the countries concerned, and banking relationships within the region. Balance of payments statistics of the ECAFE countries are not available in a form that would permit the calculation of intraregional payments for both trade and nontrade transactions. As far as nontrade transactions are concerned, there is reason to believe that the intraregional proportion is low. Although several countries of the ECAFE region have bilateral payments agreements with countries outside the region, especially with Eastern European countries, little of the trade among countries of the region is conducted under bilateral payments agreements. A mandatory system of clearing may be established by mutual agreement of the participating members. Alternatively, each member could retain the freedom to decide whether it would require all transactions to be settled through the clearing union or would leave it to traders to choose what they regard as the most advantageous method of settlement.
This paper analyses several IMF’s selected decisions of the Executive Board and selected documents. Each member shall furnish to the IMF the data necessary to determine its net official holdings of gold and United States dollars. The usability of gold or dollars for the payment of the gold subscription is not necessary to constitute “holdings.” It has been decided to recommend to the Board of Governors, where a member presents, for reasons which it shall submit to the IMF, that its reserves should not be reduced by an immediate 25 percent gold payment, that such member shall be permitted in accordance with an appropriate resolution to have its quota increased in five annual installments, with the right to accelerate the payment of such installments. In June 1947, the IMF issued a statement recommending to its members that they take effective action to prevent external transactions in gold at premium prices, because such transactions tend to undermine exchange stability and to impair monetary reserves.
This paper reviews key findings of the IMF’s Annual Report for the fiscal year ended September 1946. This report covers the operations and policies of the IMF in the period from May 6, 1946, when the Executive Directors held their first meeting in Washington, through early September 1946. Since it is intended that in future years the annual report of the Executive Directors will cover the operations of the IMF in the preceding fiscal year, such figures as are here presented deal mainly with the period ending June 30, 1946.