Fiscal Management of Scaled-Up Aid

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 plan...

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Bibliographic Details
Main Author: Gupta, Sanjeev
Other Authors: Last, Duncan, Adenauer, Isabell, Fletcher, Kevin
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2007
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Finance, Public 
653 |a Public Administration 
653 |a Budget Systems 
653 |a Public finance & taxation 
653 |a Public finance accounting 
653 |a Fiscal accounting and reporting 
653 |a Budget planning and preparation 
653 |a Budgeting 
653 |a National Government Expenditures and Related Policies: General 
653 |a Expenditure 
653 |a Budget execution and treasury management 
653 |a Accounting 
653 |a Finance, Public; Accounting 
653 |a Public Sector Accounting and Audits 
653 |a Expenditures, Public 
653 |a Budget 
653 |a Public financial management (PFM) 
653 |a Budgeting & financial management 
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653 |a National Budget, Deficit, and Debt: General 
653 |a Public Finance 
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520 |a 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