Creating Sustainable Fiscal Space for Infrastructure The Case of Tanzania

A common dilemma facing governments around the world is how to meet the sizeable fiscal costs of providing and maintaining infrastructure networks. Over the past decade, developed and developing countries have looked to fiscal rules, budgetary reforms, tax policy and administration measures, public-...

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Bibliographic Details
Main Author: Ter-Minassian, Teresa
Other Authors: Hughes, Richard, Hajdenberg, Alejandro
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Creating Sustainable Fiscal Space for Infrastructure  |b The Case of Tanzania  |c Teresa Ter-Minassian, Richard Hughes, Alejandro Hajdenberg 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2008 
300 |a 41 pages 
651 4 |a Tanzania, United Republic of 
653 |a Debt Management 
653 |a Public-private sector cooperation 
653 |a Macroeconomics 
653 |a Intangible Capital 
653 |a Debts, Public 
653 |a National Government Expenditures and Related Policies: Infrastructures 
653 |a National Government Expenditures and Related Policies: General 
653 |a Saving and investment 
653 |a Other Public Investment and Capital Stock 
653 |a Expenditures, Public 
653 |a Public debt 
653 |a Public finance & taxation 
653 |a Capital 
653 |a Debt 
653 |a Investment 
653 |a Public Finance 
653 |a Public investment spending 
653 |a Sovereign Debt 
653 |a Infrastructure 
653 |a Capacity 
653 |a Public investment and public-private partnerships (PPP) 
653 |a Public investments 
653 |a Expenditure 
700 1 |a Hughes, Richard 
700 1 |a Hajdenberg, Alejandro 
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520 |a A common dilemma facing governments around the world is how to meet the sizeable fiscal costs of providing and maintaining infrastructure networks. Over the past decade, developed and developing countries have looked to fiscal rules, budgetary reforms, tax policy and administration measures, public-private partnerships and other innovative financial instruments to raise additional finance for infrastructure investment. This paper looks at the range of options for raising the financing to meet Tanzania's infrastructure needs. It begins with a brief survey of the evidence on the relationship between infrastructure, public investment, and economic growth, and then goes on to consider the case for additional infrastructure investment in Tanzania. The second part of the paper looks at five broad options for mobilizing additional resources to meet Tanzania's infrastructure needs: (i) direct private investment and PPPs, (ii) expenditure reprioritization and efficiency, (iii) domestic revenue mobilization, (iv) external grants and concessional financing, and (v) sovereign borrowing on domestic or international credit markets. The paper concludes with some general recommendations on what combination of the above approaches might be suitable for Tanzania