Fiscal Sustainability in Heavily Indebted Countries Dependenton Nonrenewable Resources: The Case of Gabon

February 1, 2004

Preview Citation

Format: Chicago

Joseph Ntamatungiro. Fiscal Sustainability in Heavily Indebted Countries Dependenton Nonrenewable Resources: The Case of Gabon, (USA: International Monetary Fund, 2004) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper proposes a framework for assessing fiscal sustainability in heavily indebted countries dependent on exhaustible resources, with reference to Gabon. It finds that fiscal sustainability could be achieved by: (i) developing a fiscal rule for the non-oil primary fiscal balance compatible with an objective for reducing the debt-to-non-oil GDP ratio; (ii) introducing a constant oil-based income transfer per capita allowing intergenerational equity; and (iii) building up an oil savings fund. Long-term simulations show that Gabon's fiscal position is fragile and that a fiscal policy path consistent with the proposed framework could help achieve comfortable levels of net wealth.

Subject: Commodities, Fiscal policy, Fiscal stance, Fiscal sustainability, Oil, Oil, gas and mining taxes, Public debt, Taxes

Keywords: Debt, Debt ratio, Debt reduction objective, FFG position, Fiscal policy, Fiscal stance, Fiscal sustainability, Gabon, Gas and mining taxes, GDP debt ratio, Income transfer, Intergenerational equity, Net wealth, Oil, Oil, Oil GDP, Oil revenue, Savings fund, Sustainability analysis, WP

Publication Details

Pages:

38
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 2004/030
Stock No:

WPIEA0302004
ISBN:

9781451844948
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers