Expenditure Conditionality in IMF-supported Programs

This paper studies the impact of expenditure conditionality in IMF programs on the composition of public spending. A granular dataset on different government expenditure conditions covering 115 countries for the 1992-2016 period is compiled. The results support the view that while conditionality on...

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Bibliographic Details
Main Author: Gupta, Sanjeev
Other Authors: Schena, Michela, Yousefi, Seyed Reza
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 31 pages 
653 |a National Government Expenditures and Related Policies: Infrastructures 
653 |a International Monetary Arrangements and Institutions 
653 |a Total expenditures 
653 |a Public investment spending 
653 |a Public finance & taxation 
653 |a National Government Expenditures and Health 
653 |a Health care spending 
653 |a National Government Expenditures and Education 
653 |a Fiscal Policy 
653 |a Education spending 
653 |a Other Public Investment and Capital Stock 
653 |a National Government Expenditures and Related Policies: General 
653 |a Expenditure 
653 |a Expenditures, Public 
653 |a Public investments 
653 |a Public Finance 
653 |a National Government Expenditures and Related Policies: Other 
700 1 |a Schena, Michela 
700 1 |a Yousefi, Seyed Reza 
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520 |a This paper studies the impact of expenditure conditionality in IMF programs on the composition of public spending. A granular dataset on different government expenditure conditions covering 115 countries for the 1992-2016 period is compiled. The results support the view that while conditionality on specific elements of spending could help achieve a program’s short-term objectives, it is structural conditionality which delivers lasting benefits. Structural public financial management conditionality (such as on budget execution and control) has proven to be effective in boosting the long-term level of education, health, and public investment expenditures. The results further indicate that conditionality on raising such spending may come at the expense of other expenditures. Finally, the successful implementation (and not mere existence) of the conditionality is crucial for improved outcomes. These findings are relevant for policy makers targeting achievement of the Sustainable Development Goals (SDGs)