Managing Revenue Volatility in a Small Island Economy: The Case of Kiribati

August 1, 2005

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Format: Chicago

Catriona Purfield. Managing Revenue Volatility in a Small Island Economy: The Case of Kiribati, (USA: International Monetary Fund, 2005) accessed November 21, 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

The formulation of fiscal policy in Kiribati faces unusual challenges. Kiribati's revenue base is among the most volatile in the world, and it possesses sizeable financial assets. Drawing on lessons from some other countries who experience high volatility in their revenues, this paper proposes a fiscal policy rule for Kiribati which is nested within a medium-term macroeconomic framework that aims to ensure the sustainable use of Kiribati's financial assets while managing the impact of extreme revenue volatility. It also discusses improvements in the institutional fiscal policy framework that could support such a framework.

Subject: Agroindustries, Budget planning and preparation, Expenditure, Fiscal policy, Oil

Keywords: Annual budget, Budget law, Fishing license fee, Nominal rate, RERF assets, RERF drawdown, RERF sustainability, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/154
Stock No:

WPIEA2005154
ISBN:

9781451861730
ISSN:

1018-5941

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