Securing Fiscal Discipline and Credibility in

Download or read book Securing Fiscal Discipline and Credibility in written by Ljubica Dordevic and published by International Monetary Fund. This book was released on 2024-05-17 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal consolidation and the reintroduction of the WAEMU fiscal framework is crucial for maintaining debt sustainability, external viability, and financial stability. The 3 and 70 percent of GDP deficit and debt ceilings envisaged by the expired rule remain appropriate, while addressing the stock-flow adjustments will help rebuild fiscal buffers. Convergence to a fiscal deficit of 3 percent of GDP should be ensured by 2025— barring exceptional circumstances—with focus on domestic revenue mobilization, while controlling expenditure. To secure fiscal discipline and credibility, it is essential to revamp the fiscal rule with a credible debt correction mechanism and exogenous escape clauses.