Getting More from a Fiscal Stimulus
The severity and global nature of the current financial and economic crisis has increased the role expected of fiscal policy in stimulating national and global demand, protecting vulnerable groups, and investing for future growth (International Mon...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/07/11936539/getting-more-fiscal-stimulus http://hdl.handle.net/10986/10536 |
| Summary: | The severity and global nature of the
current financial and economic crisis has increased the role
expected of fiscal policy in stimulating national and global
demand, protecting vulnerable groups, and investing for
future growth (International Monetary Fund, or IMF 2009).
For those that can afford it, this means quickly designing
and implementing fiscal stimulus packages. These new
challenges have arisen while governments across the world
have, for some time, been reforming their budget management
frameworks to improve public sector performance to better
meet complex and ever-rising obligations. While there is a
risk that the short-term stimulus diverts attention from
longer-term performance reforms, this note suggests that
'performance-informed budgeting' can help
countries better address the challenges of the current
financial and economic crisis. Specifically, how governments
might enhance the impact of their fiscal stimulus through
three interrelated performance-informed areas: i)
reprioritizing public spending to maximize the impact of the
stimulus measures; ii) improving the efficiency and
effectiveness of operational expenditures to avoid waste and
maximize the available fiscal space; and iii) accelerating
investment expenditures, to both stimulate demand and build
for future growth. |
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