The economic contraction tracked by the COVID-19 pandemic has created large fiscal imbalances that will lead Latin American and Caribbean (LAC) governments to pursue fiscal consolidation policies to increase revenues and reduce expenditures. In the tax realm, questions inevitably arise as to the adequacy of tax revenues and the equity of the proposed measures. That calls for … [Read more...] about Revisiting Personalized VAT: A Tool for Fiscal Consolidation with Equity
Fiscal Policy
How Fiscal Rules Can Reduce Sovereign Debt Default Risk
The COVID crisis has generated an unprecedented fiscal response as the total resources assigned to attend the pandemic globally has reached $11 trillion, according to the World Economic Forum. Latin America and the Caribbean (LAC) has not been an exception. Taken together, the announced measures in LAC amount, on average[1], to 8 percent of the region’s GDP as stated by the … [Read more...] about How Fiscal Rules Can Reduce Sovereign Debt Default Risk
Four Reform Opportunities to Strengthen Subnational Finances in the Post-pandemic Era
The coronavirus (COVID-19) pandemic that has been wreaking havoc throughout Latin America and the Caribbean (LAC) since the first quarter of the year has had a major impact not just on people’s health but also on public finances in every country, both at national and at subnational level. According to the International Monetary Fund (IMF), the region’s real gross domestic … [Read more...] about Four Reform Opportunities to Strengthen Subnational Finances in the Post-pandemic Era
Tax amnesties in times of COVID: Exceptional measures in exceptional times
Some countries in Latin America and the Caribbean (LAC) are exploring a variety of options in their attempt to collect additional tax revenues to confront the COVID-19 emergency. With a somber forecast ahead, the region´s GDP may contract up to 6% while the fiscal deficit can climb up to 8% by the end of 2020. In this scenario, tax amnesties emerge as a way of generating … [Read more...] about Tax amnesties in times of COVID: Exceptional measures in exceptional times
Financial management operations under the COVID-19 pandemic: The Korean Experience
Due to the global spread of COVID-19, the world is now facing an unprecedented health and economic crisis. This novel virus is fundamentally changing our daily lives and working habits. Countries are facing several health, social and economic challenges to battle the pandemic and its effects while working to ensure the business continuity of the most important parts of their … [Read more...] about Financial management operations under the COVID-19 pandemic: The Korean Experience