All countries in the region have signed the Paris Agreement, which aims to increase countries' resilience and adaptive capacity, as well as stabilize global warming below 2°C and as close to 1.5°C as possible. This objective implies two major challenges for finance ministries. First, they need to help drive large-scale and unprecedented changes in the energy, construction, … [Read more...] about Six opportunities to promote resilience and decarbonization through fiscal policy
Gestión Fiscal
Are Latin American and Caribbean Countries Complying with Their Fiscal Rules?
Over the past two decades, a growing number of Latin American and Caribbean (LAC) countries began adopting fiscal rules to limit overspending influenced by election cycles, public pressure, and other political economy factors, helping the region strengthen its fiscal solvency and sustainability. However, in recent years the region has suffered several external shocks that … [Read more...] about Are Latin American and Caribbean Countries Complying with Their Fiscal Rules?
The Fiscal Puzzle of the Ukraine War for Latin America and the Caribbean
The war in Ukraine has produced a significant increase in energy costs that will likely delay the fiscal consolidation efforts already put in place by several governments in the region. This supply shock is also likely to fuel inflation and higher interest rates, adding further pressure on governments trying to service their debts. Higher domestic and global inflation has … [Read more...] about The Fiscal Puzzle of the Ukraine War for Latin America and the Caribbean
Revisiting Personalized VAT: A Tool for Fiscal Consolidation with Equity
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
Three areas where finance ministries can help solve the climate crisis
Data compiled by NASA shows that 2020 was the hottest year globally on record, tied with 2016, when compared to the average temperature recorded between 1951 and 1980. Since the 1880s, the Earth's average temperature has risen more than 1°C and there is consensus that countries need to move far more aggressively to decarbonize their economies. Finance and planning ministries … [Read more...] about Three areas where finance ministries can help solve the climate crisis