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Aid and Fiscal Management

34 Pages Posted: 17 Jan 2006  

Aleš Bulíř

International Monetary Fund (IMF)

Timothy Lane

International Monetary Fund (IMF) - Policy Development and Review Department

Date Written: June 2002

Abstract

This paper focuses on the macroeconomic aspects of fiscal management in aid-receiving countries. Despite the declining share of aid in budgets of donor countries, aid continues to play an important role in many developing countries. The paper first discusses the implications of aid in the economy as a whole and highlights the possibility of Dutch-disease effects of aid. Second, it discusses the implications of aid for short-term fiscal policy management - in particular, how actual or anticipated changes in aid receipts should be reflected in government spending.

Keywords: Foreign aid, fiscal management, economic growth

JEL Classification: F35, O23

Suggested Citation

Bulíř, Aleš and Lane, Timothy, Aid and Fiscal Management (June 2002). IMF Working Paper No. 02/112. Available at SSRN: https://ssrn.com/abstract=874990

Ales Bulir (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Timothy Lane

International Monetary Fund (IMF) - Policy Development and Review Department ( email )

700 19th St. NW
Washington, DC 20431
United States
202-623-7648 (Phone)
202-623-4405 (Fax)

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