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Business and Economics > Public Finance

You are looking at 1 - 10 of 27 items for :

  • Type: Journal Issue x
  • Palau, Republic of x
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Cover Technical Assistance Reports
Republic of Palau: Technical Assistance Report-Managing Government Employment and Compensation-Update
International Monetary Fund. Fiscal Affairs Dept.
Upon the authorities’ request, the IMF’s Fiscal Affairs Department provided technical assistance to Palau on implementing the recommendations of the technical report produced by the November 2023 mission on government compensation and employment. The creation of the Employment and Compensation Committee (ECC) demonstrated the authorities’ commitment to reform and the mission supports the authorities’ proposal to reorganize the ECC into a Steering Committee and a Working Group. Before awarding pay increases to address issues of recruitment and retention, the government needs to assess its fiscal space and determine its expenditure priorities. The importance of systematically and prominently advertising vacancies online cannot be overstated. Human resource laws and regulations are generally fit for purpose, but current practices governing new position creation and recruitment merit review by the ECC with support from FAD.
Keywords:
IMF's Fiscal Affairs Department; IMF executive directors; government position; government workforce; government worker; Human capital; Public employment; Employment; Wage scale; Wage adjustments
Cover IMF Staff Country Reports
Republic of Palau: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Palau
International Monetary Fund. Asia and Pacific Dept
The 2023 Article IV Consultation discusses that Palau has emerged from the pandemic with significant output loss, elevated public debt and historically high inflation. Adverse demographic trends, high dependence on tourism and external support, and vulnerability to climate change risks raise vulnerabilities. The authorities successfully enacted a fiscal responsibility framework and modernized the tax system. Baseline projections assume the approval of Compact Agreement in FY2024. A gradual rebound in tourism is expected to support the recovery. Fiscal policy should remain prudent over the near-term in view of the uncertain economic recovery and higher debt and create fiscal space over the medium-term. Financial sector policies should focus on improving financial sector supervision to preserve financial stability while addressing payment system challenges. Structural policies should aim to diversify the economy and the tourism sector, enable private sector investment, and attract foreign direct investment, including by streamlining processes, improving the regulatory framework, and land-use planning. Climate change policies need to be integrated into development planning, with significant adaptation costs projected over the medium-term.
Keywords:
macroeconomic prospect; foreign reserve asset; GDP estimate; money market rate; COFA renewal; policy option; graduate school USA; Tourism; Fiscal stance; Climate change; Global; Pacific Islands; East Asia
Cover IMF Staff Country Reports
Republic of Palau: Selected Issues
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper explores policy options, and strategies for addressing climate change in Palau. Adaptation can be very effective at reducing the cost of sea-level rise, but it requires careful planning and a balanced mix of protection and planned retreat. In order to be effective and efficient, adaptation to climate change must be an integral part of development planning. With many competing needs, the government must carefully allocate resources across all possible uses, including adaptation to climate change, while considering the distributional effects of its programs. Palau’s conditional mitigation targets are ambitious. Palau can continue to drive investments toward renewable infrastructure and explore complementary policies. With the introduction of a new solar farm, Palau is expected to increase its renewable generation share to 20 percent in the near future. Carbon pricing can also play a role in reducing emissions, raising revenues, and driving the transition. Palau’s effective carbon price on diesel and gasoline are high compared to other island economies. With Palau’s reliance on imported goods and tourism, the global mitigation agenda may affect Palau’s economy.
Keywords:
baseline GHG projection; GHG reduction; policy option; IMF green PFM framework; carbon rate; Climate change; Climate finance; Global
Cover IMF Staff Country Reports
Republic of Palau: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
International Monetary Fund. Asia and Pacific Dept
The COVID-19 pandemic and related containment measures have severely impacted the economy. Border closure and the suspension of commercial flights curtailed tourist arrivals. Real GDP contracted by 9.7 percent in FY2020, notwithstanding policy support. The economic contraction is estimated to have deepened in FY2021, and a gradual recovery is expected in FY2022 as tourism activities resume. While Palau’s public debt remains sustainable, the economic fallout of the pandemic and the cost of the fiscal response have led to a sharp deterioration of the fiscal position and a rapid increase in public debt. The high share of concessional loans from multilateral creditors in Palau’s external debt is an important risk mitigating factor. Palau is vulnerable to climate change and natural disasters.
Keywords:
money market rate; tourist expenditure survey; rock island; vaccination program; climate change adaptation; Fiscal consolidation; Climate change; COVID-19; Tourism; Pacific Islands; Europe
Cover IMF Working Papers
Fiscal Policy Multipliers in Small States
Ali Alichi
,
Mr. Ippei Shibata
, and
Kadir Tanyeri
Government debt in many small states has risen beyond sustainable levels and some governments are considering fiscal consolidation. This paper estimates fiscal policy multipliers for small states using two distinct models: an empirical forecast error model with data from 23 small states across the world; and a Dynamic Stochastic General Equilibrium (DSGE) model calibrated to a hypothetical small state’s economy. The results suggest that fiscal policy using government current primary spending is ineffective, but using government investment is very potent in small states in affecting the level of their GDP over the medium term. These results are robust to different model specifications and characteristics of small states. Inability to affect GDP using current primary spending could be frustrating for policymakers when an expansionary policy is needed, but encouraging at the current juncture when many governments are considering fiscal consolidation. For the short term, however, multipliers for government current primary spending are larger and affected by imports as share of GDP, level of government debt, and position of the economy in the business cycle, among other factors.
Keywords:
WP; real GDP; Government Spending; Fiscal Policy; Fiscal Multipliers; GDP cost; GDP effect; GDP impact; government investment multiplier; trend GDP; GDP statistics; cost of fiscal consolidation; effect of a consolidation; world GDP; GDP path; impacts of government consumption; fiscal multiplier; Public investment spending; Current spending; Government consumption; Caribbean; Global
Cover IMF Staff Country Reports
Republic of Palau: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
International Monetary Fund. Asia and Pacific Dept
This Article IV Consultation discussions with the Republic of Palau focused on ensuring long-term fiscal sustainability, making potential growth more resilient and sustainable, and preserving financial stability and facilitating credit extension. The consultation discussions also highlight that the main economic policy priorities for Palau are to develop a medium-term fiscal framework and strategy to help manage fiscal risks and the expiration of the Compact grants, to raise public investment, to protect social spending, to make growth more resilient and sustainable through other reforms, and to preserve financial stability and integrity. The current fiscal policy approach is based on the legal requirement to maintain a balanced or surplus cash flow for various parts of the budget. While this fiscal policy strategy has resulted in overall budget surpluses and a decline in net debt, the move to a medium-term fiscal framework and strategy would help Palau to address future challenges.
Keywords:
ISCR; CR; Palau; GDP; development partner; government; Palauan; liability positions vis-à-vis nonresident; capital grant; high-value tourism destination; investment plan; Palau's reputation; Tourism; Fiscal stance; Public investment and public-private partnerships (PPP); Pacific Islands; Global
Cover Asia and Pacific Small States Monitor, August 2014
Asia and Pacific Small States Monitor, August 2014
Ms. Shari Boyce
,
Mr. Sergei Dodzin
,
Ezequiel Cabezon
,
Mr. Fazurin Jamaludin
,
Mr. Yiqun Wu
, and
Ms. Rosanne Heller

Abstract

This issue of the Asia & Pacific Small States Monitor focuses on the challenges facing Asia and Pacific small states associated with natural disasters and climate change. Most tourism-oriented economies experienced a robust increase in arrivals, partly reflecting country-specific factors. Among commodity exporters (Bhutan, Solomon Islands, and Timor-Leste) and other Asia and Pacific small states, growth remains uneven: robust activity in Bhutan was driven mainly by hydropower-related construction activities; Solomon Islands experienced a continuing decline of logging stocks and a short-term disruption of gold production; and Timor-Leste’s ongoing depletion of oil reserves has led to a tighter budget constraint and lower government spending in the non-oil sector.

Keywords:
MISC PERIOD; Misc.; IMF feature event; APD small states; IMF staff estimate; IMF deputy managing director Rachel Kyte; href; UN conference; IMF Palau mission team; IMF statistics dept; Natural disasters; Fiscal multipliers; Tourism; Credit; Pacific Islands; Global; Caribbean; Climate change; Asia and Pacific
Cover IMF Staff Country Reports
Republic of Palau: Staff Report for the 2014 Article IV Consultation
International Monetary Fund. Asia and Pacific Dept
This 2014 Article IV Consultation highlights that after two years of strong expansion, growth is estimated at about zero percent in the fiscal year 2013 (FY2013, ending in September) in the Republic of Palau owing to declines in construction and tourism. Inflation moderated to 2¾ percent (annual average) in FY2013 thanks to stable international food and fuel prices, and it is expected to stay at about 3 percent in FY2014. Growth is projected to increase to 1¾ percent in FY2014 and to 2¼–2½ percent over the medium term driven by the recovery in tourism and infrastructure developments.
Keywords:
ISCR; CR; reform; authority; Palau; private sector development; investor confidence; tax reform bill; Palau authorities; PFTAC TA; near-term outlook; Fiscal consolidation; Tourism; Infrastructure; Asia and Pacific; Pacific Islands
Cover IMF Staff Country Reports
Republic of Palau: Selected Issues
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper describes Palau’s fiscal challenges and policy options to achieve long-term fiscal sustainability. Palau relies heavily on compact grants, and without continued fiscal consolidation over the medium term, the fiscal position will become unsustainable after these grants expire in FY2024. The fiscal sustainability analysis uses an intertemporal budget constraint model to show that reducing the current deficit excluding grants by about 8 percentage points of GDP during FY2014–19 would ensure Palau’s long-term fiscal sustainability. The paper also discusses the role of tourism in Palau and identifies policy priorities to further promote this sector and sustain growth.
Keywords:
ISCR; CR; Palau; tax; tourism industry; increase tourism revenue; tourism growth; tourism volatility; Palau's tourism infrastructure; import tax exemption; Tourism; Fiscal sustainability; Fiscal consolidation; Pacific Islands; Global
Cover IMF Staff Country Reports
Republic of Palau: Staff Report for the 2012 Article IV Consultation
International Monetary Fund
This 2012 Article IV Consultation reports that Palau’s growth is expected to be favorable at 3 percent in FY2012 and to average 2 percent over the medium term. The outlook is clouded by an unsettled global environment, and downside risks dominate. Highly dependent on tourism, imports of food and fuel, and foreign aid, Palau remains vulnerable to external headwinds and has limited policy space to counter these risks. The authorities have made commendable efforts to reduce the current fiscal deficit markedly during FY2010–11, but the deficit remains sizable.
Keywords:
ISCR; CR; authority; authorities in the Republic of Palau; staff; fund staff; reform agenda; energy sector reform; tourism sector; Budget planning and preparation; Fiscal stance; Pacific Islands; Asia and Pacific; Global