Budget Institutions and Fiscal Performance in Low-Income Countries

57 Pages Posted: 5 Apr 2010

See all articles by Era Dabla-Norris

Era Dabla-Norris

International Monetary Fund (IMF)

Richard Allen

International Monetary Fund (IMF)

Luis-Felipe Zanna

International Monetary Fund (IMF)

Tej Prakash

International Monetary Fund (IMF)

Eteri Kvintradze

International Monetary Fund (IMF)

Victor Lledo

International Monetary Fund (IMF)

Irene Yackovlev

International Monetary Fund (IMF)

Sophia Gollwitzer

Graduate Institute of International and Development Studies (IHEID)

Date Written: March 2010

Abstract

This paper presents, for the first time, multi-dimensional indices of the quality of budget institutions in low-income countries. The indices allow for benchmarking against the performance of middle-income countries, across regions, and according to different institutional arrangements that deliver good fiscal performance. Using the constructed indices, the paper provides preliminary empirical support for the hypotheses that strong budget institutions help improve fiscal balances and public external debt outcomes; and countries with stronger fiscal institutions have better scope to conduct countercyclical policies.

Keywords: Budget deficits, Budgetary policy, Budgeting, Budgets, Business cycles, Cross country analysis, Economic models, Fiscal policy, Low-income developing countries

Suggested Citation

Dabla-Norris, Era and Allen, Richard and Zanna, Luis-Felipe and Prakash, Tej and Kvintradze, Eteri and Lledo, Victor and Yackovlev, Irene and Gollwitzer, Sophia, Budget Institutions and Fiscal Performance in Low-Income Countries (March 2010). IMF Working Papers, Vol. , pp. 1-56, 2010. Available at SSRN: https://ssrn.com/abstract=1583338

Era Dabla-Norris (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Richard Allen

International Monetary Fund (IMF) ( email )

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

Luis-Felipe Zanna

International Monetary Fund (IMF) ( email )

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

Tej Prakash

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Eteri Kvintradze

International Monetary Fund (IMF) ( email )

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

Victor Lledo

International Monetary Fund (IMF) ( email )

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

Irene Yackovlev

International Monetary Fund (IMF) ( email )

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

Sophia Gollwitzer

Graduate Institute of International and Development Studies (IHEID) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

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