Fiscal Adjustment in Sudan: Size, Speed and Composition
44 Pages Posted: 26 Apr 2010
Date Written: March 2010
Abstract
The paper aims to identify the optimal size, speed and composition of the medium-term fiscal adjustment in the context of Sudan's limited oil reserves. The permanently sustainable non-oil primary balance approach suggests the need for significant fiscal adjustment over the medium term, requiring a widening of the tax base. Cross-country comparisons highlight VAT and personal income tax (as well as tax administration) as key areas for reform. The paper also suggests the need for complementary expenditure-side measures in the areas of petroleum pricing and anchoring fiscal policy in non-oil indicators.
Keywords: Cross country analysis, Economic models, Fiscal policy, Fiscal reforms, Government expenditures, Income taxes, Oil producing countries, Oil revenues, Oil sector, Pricing policy, Sudan, Tax administration, Tax systems, Value added tax
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