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Aid Scaling Up: Do Wage Bill Ceilings Stand in the Way?
Author:
Ms. Annalisa Fedelino
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Mr. Gerd Schwartz
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, and
Marijn Verhoeven null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 106
Language:
English
Publication Date:
01 Apr 2006
DOI:
https://doi.org/10.5089/9781451863666.001
ISBN:
9781451863666
ISSN:
1018-5941
Pages:
37
Keywords:
WP; wage bill; bill ceiling; bill conditionality; bill adjuster; bill PC; IMF conditionality; aid scaling up; MDGs; Wages; Public sector wages; Wage adjustments; Civil service reform; Government wage bill; Sub-Saharan Africa; Central America
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper assesses whether the scaling up of aid and the resulting increase in government spending that is needed to meet the Millennium Development Goals (MDGs) would be hampered by wage bill ceilings that are often part of government programs supported by the IMF's Poverty Reduction and Growth Facility (PRGF). Based on country case studies for 2003-05, the paper suggests that, in the past, wage bill ceilings have not restricted the use of available donor funds. Yet the paper offers a number of suggestions for further enhancing the flexibility of wage bill conditionality in PRGF-supported programs to respond to higher aid flows that may result in the future.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund