Cover IMF Working Papers
Buy Book in Print
Expenditure Conditionality in IMF-supported Programs
Author:
Mr. Sanjeev Gupta
Search for other papers by Mr. Sanjeev Gupta in
Current site
Google Scholar Close
,
Michela Schena null

Search for other papers by Michela Schena in
Current site
Google Scholar Close
, and
Mr. Seyed Reza Yousefi null

Search for other papers by Mr. Seyed Reza Yousefi in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 255
Language:
English
Publication Date:
07 Dec 2018
DOI:
https://doi.org/10.5089/9781484389072.001
ISBN:
9781484389072
ISSN:
1018-5941
Pages:
31
Keywords:
WP; expenditure conditionality
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.
Download PDF (1.3 MB) Download Epub
This paper studies the impact of expenditure conditionality in IMF programs on the composition of public spending. A granular dataset on different government expenditure conditions covering 115 countries for the 1992-2016 period is compiled. The results support the view that while conditionality on specific elements of spending could help achieve a program’s short-term objectives, it is structural conditionality which delivers lasting benefits. Structural public financial management conditionality (such as on budget execution and control) has proven to be effective in boosting the long-term level of education, health, and public investment expenditures. The results further indicate that conditionality on raising such spending may come at the expense of other expenditures. Finally, the successful implementation (and not mere existence) of the conditionality is crucial for improved outcomes. These findings are relevant for policy makers targeting achievement of the Sustainable Development Goals (SDGs).
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund