Fiscal Sustainability with Non-Renewable Resources
Author | : Mr.Nigel Andrew Chalk |
Publisher | : International Monetary Fund |
Total Pages | : 37 |
Release | : 1998-03-01 |
ISBN-10 | : 9781451844351 |
ISBN-13 | : 1451844352 |
Rating | : 4/5 (51 Downloads) |
Download or read book Fiscal Sustainability with Non-Renewable Resources written by Mr.Nigel Andrew Chalk and published by International Monetary Fund. This book was released on 1998-03-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses sustainable fiscal behavior in an economy where wealth is derived predominantly from a non-renewable resource. It explores the issue in a simple dynamic framework that highlights the structural weaknesses in the underlying budgetary position, takes into account the rate of depletion of a country’s natural resource base, and examines the impact of changes in a country’s terms of trade. An alternative indicator of fiscal sustainability is derived, and the principal factors determining sustainability are identified. The results of the analysis are applied to Venezuela and Kuwait.