Fiscal Management of Scaled-Up Aid

66 Pages Posted: 26 Sep 2007

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Gerd Schwartz

International Monetary Fund (IMF) - Fiscal Affairs Department

Shamsuddin Tareq

International Monetary Fund (IMF)

Richard Allen

International Monetary Fund (IMF)

Isabell Adenauer

International Monetary Fund (IMF)

Kevin Timothy Fletcher

International Monetary Fund (IMF)

Duncan Last

affiliation not provided to SSRN

Date Written: September 2007

Abstract

This paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans. There is merit in smoothing expenditures over time so that all programs are adequately funded. The paper argues that wage-bill ceilings should be used in Fund-supported programs only in exceptional cases. The paper also discusses basic reforms for strengthening public financial management systems for effective utilization of scaled-up aid flows.

Keywords: Working Paper, Development assistance, Fiscal policy, Public finance, Government expenditures, Fund policies

Suggested Citation

Gupta, Sanjeev and Schwartz, Gerd and Tareq, Shamsuddin and Allen, Richard and Adenauer, Isabell and Fletcher, Kevin Timothy and Last, Duncan, Fiscal Management of Scaled-Up Aid (September 2007). IMF Working Papers, Vol. , pp. 1-64, 2007. Available at SSRN: https://ssrn.com/abstract=1016252

Sanjeev Gupta (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Gerd Schwartz

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Shamsuddin Tareq

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Richard Allen

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Isabell Adenauer

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Kevin Timothy Fletcher

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Duncan Last

affiliation not provided to SSRN

No Address Available

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