Cover Departmental Papers
A Growth-Friendly Path for Building Fiscal Buffers in the Caucuses and Central Asia
Author: Mr. Edward R Gemayel, Ms. Lorraine Ocampos, Matteo Ghilardi, and Mr. James Aylward
Series:
Departmental Papers
Volume/Issue:
Volume 2018: Issue 006
Language:
English
Publication Date:
10 Apr 2018
DOI:
https://doi.org/10.5089/9781484337165.087
ISBN:
9781484337165
ISSN:
2616-5333
Pages:
55
Keywords:
DPPP; DP; CCA country; country; tax revenue; oil exporter; oil importer; Tajikistan share; Tajikistan's measure; increase revenue productivity; GDP ratio; commodity exporter; gross investment; Turkmenistan share; review taxation; Oil; Central Asia and the Caucasus
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The Departmental Paper Series presents research by IMF staff on issues of broad regional or cross-country interest. The views expressed in this paper 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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Since 2014, large and persistent external shocks have hit the CCA region, particularly a slump in global commodity prices and slower growth in its key economic partners. Fiscal accommodation, along with currency adjustment, has helped the CCA mitigate the impact of the external shocks. However, amid weakening revenues, increased public spending has widened budget deficits, weakened external balances, and increased public debts. Fiscal policy and strengthening fiscal frameworks must play a central role in helping build buffers and ensuring debt sustainability while supporting growth. This requires (1) tightening fiscal policies to reduce deficits to help restore external balance and fiscal sustainability, (2) strengthening tax systems and tax collection and tilting expenditure toward a more productive and growth-enhancing composition, and (3) implementing public financial management reforms and strengthening fiscal institutions, including through fiscal rules.
Cover Departmental Papers
Departmental Papers
ISSN:
2616-5333
Publisher:
International Monetary Fund