The Bahamas: Selected Issues

May 14, 2018

Preview Citation

Format: Chicago

The Bahamas: Selected Issues, (USA: International Monetary Fund, 2018) accessed December 21, 2024

Summary

This Selected Issues paper makes the case for a rules-based fiscal framework for The Bahamas and discusses its design, calibration, and implementation. The IMF staff recommends adopting a headline deficit ceiling and a cap on current expenditure growth, both calibrated to guide debt toward a suitable medium-term anchor while allowing room for stabilization. A headline deficit target is simpler to communicate and monitor than a structural balance rule. Such a framework would allow expanding capital spending, up to the limit provided by the deficit ceiling, in the event of improvements in revenue performance. Moreover, in line with best practices, the framework should be anchored around a pre-defined medium-term debt target that will guide the calibration of proposed operation rules.

Subject: Education, Employment, Fiscal policy, Fiscal rules, Labor, Labor markets, Public debt

Keywords: Bahamas, Caribbean, CR, Debt anchor, Deficit, Deficit ceiling, Deficit rule, Deficit target, Employment, Fiscal rules, GDP, Global, ISCR, Labor markets, Multilayer disaster risk financing strategy, Unemployment rate

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/119
Stock No:

1BHSEA2018002
ISBN:

9781484355176
ISSN:

1934-7685

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