Fiscal policy has a key role in reducing tobacco use. According to the WHO FCTC, raising taxes has been one of the most effective measures by far. This is because an increase in taxes, directly affects the price, which in turn makes tobacco products less affordable. Pricier tobacco products have the positive effect of reducing tobacco initiation, prevalence, and consumption. … [Read more...] about Four Strategies to Make Tobacco Taxation an Effective Tool to Reduce Consumption
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
Aligning Public Investments with Sustainable and Climate Goals
Increasing disaster risks in developing countries call for strategic planning and investments in resilient and low-carbon infrastructure. The tsunami that caused extensive destruction and loss of life in Tonga in January 2022 stressed the vulnerability of developing countries, especially small island developing states, to disasters triggered by natural hazards, such as … [Read more...] about Aligning Public Investments with Sustainable and Climate Goals
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
Five Reasons COP26 is a Big Deal for Finance Ministries
The streams of analysis on the UN climate change talks in Glasgow last December read like the opening of the Charles Dickens’ novel, A Tale of Two Cities: “It was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair…” There is some truth to both sides. There was deep regret that the goal of developed countries to … [Read more...] about Five Reasons COP26 is a Big Deal for Finance Ministries