Introduction

No AccessApr 2020IntroductionAuthors/Editors: Santiago Herrera, Eduardo OlaberriaSantiago HerreraSearch for more papers by this author, Eduardo OlaberriaSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1520-1_ch1AboutView ChaptersFull TextPDF (0.5 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Explains that many countries in Latin America face daunting fiscal challenges following a substantial surge in debt-to-gross domestic product (GDP) ratios during recent years. Estimates of fiscal gaps suggest that sustained fiscal tightening will be needed in nearly all Latin America and the Caribbean (LAC) countries to bring debt down to prudent levels. Rising volatility in world financial markets will make public debt sustainability a major concern in many countries in the region, obliging more governments to generate high primary surpluses at a time when growth prospects are being revised downwards. Budget rigidities in terms of the share of total spending or GDP differ widely across the LAC countries, from mid-60 percent in Chile to more than 90 percent in Brazil, Colombia, and Costa Rica. The issue of budget rigidities is not limited to Latin America; policy makers all over the world express concerns about budget rigidities, especially their growth and adverse effects on fiscal performance. REFERENCESCetrángolo, Oscar, Juan Pablo Jiménez, and Ramiro Ruiz del Castillo. 2009. “Rigideces y Espacios Fiscales en America Latina.” Serie Documento de Proyecto 269, Economic Commission for Latin America and the Caribbean (ECLAC), Santiago, Chile. Google ScholarEcheverry, Juan Carlos, Jorge Alexander Bonilla, and Andres Moya. 2006. “Rigideces institucionales y flexibilidad presupuestaria: Los casos de Argentina, Colombia, México y Perú.” Documento CEDE 2006-33, Universidad de los Andes, Bogotá, Colombia. Google ScholarInternational Monetary Fund. 2018. World Economic Outlook database, October. https://www.imf.org/en/Publications/SPROLLs/world-economic-outlook-databases#sort=%40imfdate%20descending. Google ScholarInternational Monetary Fund. 2019. World Economic Outlook database, April. https://www.imf.org/en/Publications/SPROLLs/world-economic-outlook-databases#sort=%40imfdate%20descending Google ScholarMattina, Todd and Victoria Gunnarsson. 2007. “Budget Rigidity and Expenditure Efficiency in Slovenia.” IMF Working Paper WP/07/131, International Monetary Fund, Washington, DC. Google ScholarSchick, Allen. 2007. “Off-Budget Expenditure: An Economic and Political Framework.” OECD Journal of Budgeting 7 (3): 1–32. Google ScholarVegh, Carlos, Guillermo Vuletin, Daniel Riera-Crichton, Diego Friedheim, Luis Morano, and José Andrée Camarana. 2018. Fiscal Adjustment in Latin America and the Caribbean: Short-Run Pain, Long-Run Gain? LAC Semiannual Report. Washington, DC: World Bank Group. Google Scholarvon Hagen, Jurgen and Chen. 2019. “Budget Rigidities and Fiscal Performance in Latin America and the Caribbean.” Background Report for Regional Study on Budget Rigidities in Latin America, unpublished paper, World Bank, Washington, DC. Google Scholar Previous chapterNext chapter FiguresreferencesRecommendeddetails View Published: April 2020ISBN: 978-1-4648-1520-1 Copyright & Permissions Related RegionsLatin America & CaribbeanRelated TopicsFinance and Financial Sector DevelopmentMacroeconomics and Economic Growth KeywordsBUDGETS AND BUDGETINGPUBLIC SPENDINGTAX POLICYPUBLIC DEBTFISCAL SUSTAINABILITYFINANCIAL POLICYFINANCIAL MANAGEMENTFINANCIAL CRISISFINANCIAL DEVELOPMENTGROSS DOMESTIC PRODUCTGDPDEBT MANAGEMENT PDF DownloadLoading ...