Managing Medium-Term Fiscal Challenges

Mexico needs a comprehensive fiscal reform to alleviate the looming medium-term pressures on its budget. This policy note contributes to the debate on Mexico's looming fiscal challenges. The country's fiscal framework, centered on the 200...

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Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ALTERNATIVE MINIMUM TAX BENEFICIARIES CAPS CASH TRANSFER CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COMPLIANCE COSTS CONTINGENT LIABILITIES CORPORATE TAX CORPORATE TAX RATE COST OF PRODUCTION DEBT LEVELS DEDUCTIONS DEFICIT FINANCING DEMOGRAPHIC DEPOSITS DISTRIBUTIONAL IMPACTS ECONOMIC GROWTH ECONOMIC STABILITY ECONOMIC TRANSACTIONS ECONOMIC VOLATILITY ELECTRICITY ENERGY CONSUMPTION ENERGY PRICE ENERGY PRICES ENERGY SUBSIDIES EVASION EXCISE TAX EXPENDITURE EXPENDITURES FEDERAL TAX FEDERAL TAXES FISCAL DISCIPLINE FISCAL POLICY FISCAL RESPONSIBILITY FUEL PRICES GASOLINE PRICES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH SPENDING HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INCOME TAX INCOME TAXES INFLATION INFLATION EXPECTATIONS INFORMAL ECONOMY INFORMATION FLOWS INSURANCE INTERNATIONAL STANDARDS INVESTMENT IN ENERGY EFFICIENCY LEGAL REFORM LIFE EXPECTANCY LOCAL GOVERNMENT LOCAL GOVERNMENT TAX LOCAL GOVERNMENTS LOCAL TAXES LOWER INCOME HOUSEHOLDS LOWER PRICE MONETARY AUTHORITIES NATIONAL DEVELOPMENT NEGATIVE INCOME TAXES NEGATIVE SHOCKS OIL PRICE OIL PRICES OIL PRODUCTION OPPORTUNITY COST PENSION PENSION REFORM PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME PERSONAL INCOME PRICE MOVEMENTS PRICE OF OIL PRICE VOLATILITY PROPERTY TAX PUBLIC PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSIDIES PUBLIC TRANSFER PURCHASING POWER RATE OF RETURN REAL INTEREST REAL INTEREST RATES RESERVE RESERVE FUND REVENUE COLLECTION RISK MANAGEMENT SAVINGS SCENARIOS TAX TAX ADMINISTRATION TAX BASE TAX COLLECTION TAX COMPLIANCE TAX CREDIT TAX EVASION TAX EXEMPTIONS TAX EXPENDITURES TAX RATES TAX REFORM TAX REGIMES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY VALUE ADDED TAX WITHDRAWAL
Online Access:	http://documents.worldbank.org/curated/en/2013/04/17570432/managing-medium-term-fiscal-challenges http://hdl.handle.net/10986/16573

id	okr-10986-16573
recordtype	oai_dc
spelling	okr-10986-165732021-04-23T14:03:30Z Managing Medium-Term Fiscal Challenges World Bank ALTERNATIVE MINIMUM TAX BENEFICIARIES CAPS CASH TRANSFER CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COMPLIANCE COSTS CONTINGENT LIABILITIES CORPORATE TAX CORPORATE TAX RATE COST OF PRODUCTION DEBT LEVELS DEDUCTIONS DEFICIT FINANCING DEMOGRAPHIC DEPOSITS DISTRIBUTIONAL IMPACTS ECONOMIC GROWTH ECONOMIC STABILITY ECONOMIC TRANSACTIONS ECONOMIC VOLATILITY ELECTRICITY ENERGY CONSUMPTION ENERGY PRICE ENERGY PRICES ENERGY SUBSIDIES EVASION EXCISE TAX EXPENDITURE EXPENDITURES FEDERAL TAX FEDERAL TAXES FISCAL DISCIPLINE FISCAL POLICY FISCAL RESPONSIBILITY FUEL PRICES GASOLINE PRICES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH SPENDING HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INCOME TAX INCOME TAXES INFLATION INFLATION EXPECTATIONS INFORMAL ECONOMY INFORMATION FLOWS INSURANCE INTERNATIONAL STANDARDS INVESTMENT IN ENERGY EFFICIENCY LEGAL REFORM LIFE EXPECTANCY LOCAL GOVERNMENT LOCAL GOVERNMENT TAX LOCAL GOVERNMENTS LOCAL TAXES LOWER INCOME HOUSEHOLDS LOWER PRICE MONETARY AUTHORITIES NATIONAL DEVELOPMENT NEGATIVE INCOME TAXES NEGATIVE SHOCKS OIL PRICE OIL PRICES OIL PRODUCTION OPPORTUNITY COST PENSION PENSION REFORM PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME PERSONAL INCOME PRICE MOVEMENTS PRICE OF OIL PRICE VOLATILITY PROPERTY TAX PUBLIC PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSIDIES PUBLIC TRANSFER PURCHASING POWER RATE OF RETURN REAL INTEREST REAL INTEREST RATES RESERVE RESERVE FUND REVENUE COLLECTION RISK MANAGEMENT SAVINGS SCENARIOS TAX TAX ADMINISTRATION TAX BASE TAX COLLECTION TAX COMPLIANCE TAX CREDIT TAX EVASION TAX EXEMPTIONS TAX EXPENDITURES TAX RATES TAX REFORM TAX REGIMES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY VALUE ADDED TAX WITHDRAWAL Mexico needs a comprehensive fiscal reform to alleviate the looming medium-term pressures on its budget. This policy note contributes to the debate on Mexico's looming fiscal challenges. The country's fiscal framework, centered on the 2006 budget and fiscal responsibility law, and prudent fiscal risk management has helped maintain short-term budget stability and a fairly stable public debt path, even in times of economic volatility. However, Mexico faces serious longer term fiscal challenges that are not always recognized, measured, and addressed in policy debates, which tend to focus on approving the annual budget. And though Mexico has adopted several policies to mitigate oil-price volatility on the budget, oil production has fallen substantially over the past few years, drawing renewed attention to the longer term challenge of replacing part of the oil-related public revenue base with other, more permanent sources of revenue. Further, spending pressures associated with increasing aging-related spending, public investment, and social spending needs call for a discussion of the fiscal implications of additional impending outlays. Mexico's falling oil revenue and rising public spending needs over the medium term require increased tax revenue and more efficient and better targeted public spending. Looking more closely at this medium- and long-term revenue and spending trends and publishing a medium-term budget outlook would allow for long-term budget planning. 2014-01-16T21:25:38Z 2014-01-16T21:25:38Z 2013-04 http://documents.worldbank.org/curated/en/2013/04/17570432/managing-medium-term-fiscal-challenges http://hdl.handle.net/10986/16573 English en_US Mexico policy note;no. 8 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Policy Note Economic & Sector Work Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ALTERNATIVE MINIMUM TAX BENEFICIARIES CAPS CASH TRANSFER CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COMPLIANCE COSTS CONTINGENT LIABILITIES CORPORATE TAX CORPORATE TAX RATE COST OF PRODUCTION DEBT LEVELS DEDUCTIONS DEFICIT FINANCING DEMOGRAPHIC DEPOSITS DISTRIBUTIONAL IMPACTS ECONOMIC GROWTH ECONOMIC STABILITY ECONOMIC TRANSACTIONS ECONOMIC VOLATILITY ELECTRICITY ENERGY CONSUMPTION ENERGY PRICE ENERGY PRICES ENERGY SUBSIDIES EVASION EXCISE TAX EXPENDITURE EXPENDITURES FEDERAL TAX FEDERAL TAXES FISCAL DISCIPLINE FISCAL POLICY FISCAL RESPONSIBILITY FUEL PRICES GASOLINE PRICES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH SPENDING HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INCOME TAX INCOME TAXES INFLATION INFLATION EXPECTATIONS INFORMAL ECONOMY INFORMATION FLOWS INSURANCE INTERNATIONAL STANDARDS INVESTMENT IN ENERGY EFFICIENCY LEGAL REFORM LIFE EXPECTANCY LOCAL GOVERNMENT LOCAL GOVERNMENT TAX LOCAL GOVERNMENTS LOCAL TAXES LOWER INCOME HOUSEHOLDS LOWER PRICE MONETARY AUTHORITIES NATIONAL DEVELOPMENT NEGATIVE INCOME TAXES NEGATIVE SHOCKS OIL PRICE OIL PRICES OIL PRODUCTION OPPORTUNITY COST PENSION PENSION REFORM PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME PERSONAL INCOME PRICE MOVEMENTS PRICE OF OIL PRICE VOLATILITY PROPERTY TAX PUBLIC PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSIDIES PUBLIC TRANSFER PURCHASING POWER RATE OF RETURN REAL INTEREST REAL INTEREST RATES RESERVE RESERVE FUND REVENUE COLLECTION RISK MANAGEMENT SAVINGS SCENARIOS TAX TAX ADMINISTRATION TAX BASE TAX COLLECTION TAX COMPLIANCE TAX CREDIT TAX EVASION TAX EXEMPTIONS TAX EXPENDITURES TAX RATES TAX REFORM TAX REGIMES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY VALUE ADDED TAX WITHDRAWAL
spellingShingle	ALTERNATIVE MINIMUM TAX BENEFICIARIES CAPS CASH TRANSFER CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION COMPLIANCE COSTS CONTINGENT LIABILITIES CORPORATE TAX CORPORATE TAX RATE COST OF PRODUCTION DEBT LEVELS DEDUCTIONS DEFICIT FINANCING DEMOGRAPHIC DEPOSITS DISTRIBUTIONAL IMPACTS ECONOMIC GROWTH ECONOMIC STABILITY ECONOMIC TRANSACTIONS ECONOMIC VOLATILITY ELECTRICITY ENERGY CONSUMPTION ENERGY PRICE ENERGY PRICES ENERGY SUBSIDIES EVASION EXCISE TAX EXPENDITURE EXPENDITURES FEDERAL TAX FEDERAL TAXES FISCAL DISCIPLINE FISCAL POLICY FISCAL RESPONSIBILITY FUEL PRICES GASOLINE PRICES GOVERNMENT REVENUES GOVERNMENT SPENDING HEALTH SPENDING HOUSING HUMAN CAPITAL INCOME DISTRIBUTION INCOME INEQUALITY INCOME LEVELS INCOME TAX INCOME TAXES INFLATION INFLATION EXPECTATIONS INFORMAL ECONOMY INFORMATION FLOWS INSURANCE INTERNATIONAL STANDARDS INVESTMENT IN ENERGY EFFICIENCY LEGAL REFORM LIFE EXPECTANCY LOCAL GOVERNMENT LOCAL GOVERNMENT TAX LOCAL GOVERNMENTS LOCAL TAXES LOWER INCOME HOUSEHOLDS LOWER PRICE MONETARY AUTHORITIES NATIONAL DEVELOPMENT NEGATIVE INCOME TAXES NEGATIVE SHOCKS OIL PRICE OIL PRICES OIL PRODUCTION OPPORTUNITY COST PENSION PENSION REFORM PENSION SYSTEM PENSION SYSTEMS PENSIONS PER CAPITA INCOME PERSONAL INCOME PRICE MOVEMENTS PRICE OF OIL PRICE VOLATILITY PROPERTY TAX PUBLIC PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC REVENUES PUBLIC SECTOR PUBLIC SPENDING PUBLIC SUBSIDIES PUBLIC TRANSFER PURCHASING POWER RATE OF RETURN REAL INTEREST REAL INTEREST RATES RESERVE RESERVE FUND REVENUE COLLECTION RISK MANAGEMENT SAVINGS SCENARIOS TAX TAX ADMINISTRATION TAX BASE TAX COLLECTION TAX COMPLIANCE TAX CREDIT TAX EVASION TAX EXEMPTIONS TAX EXPENDITURES TAX RATES TAX REFORM TAX REGIMES TAX REVENUE TAX REVENUES TAX SYSTEM TRANSPARENCY VALUE ADDED TAX WITHDRAWAL World Bank Managing Medium-Term Fiscal Challenges
geographic_facet	Latin America & Caribbean Mexico
relation	Mexico policy note;no. 8
description	Mexico needs a comprehensive fiscal reform to alleviate the looming medium-term pressures on its budget. This policy note contributes to the debate on Mexico's looming fiscal challenges. The country's fiscal framework, centered on the 2006 budget and fiscal responsibility law, and prudent fiscal risk management has helped maintain short-term budget stability and a fairly stable public debt path, even in times of economic volatility. However, Mexico faces serious longer term fiscal challenges that are not always recognized, measured, and addressed in policy debates, which tend to focus on approving the annual budget. And though Mexico has adopted several policies to mitigate oil-price volatility on the budget, oil production has fallen substantially over the past few years, drawing renewed attention to the longer term challenge of replacing part of the oil-related public revenue base with other, more permanent sources of revenue. Further, spending pressures associated with increasing aging-related spending, public investment, and social spending needs call for a discussion of the fiscal implications of additional impending outlays. Mexico's falling oil revenue and rising public spending needs over the medium term require increased tax revenue and more efficient and better targeted public spending. Looking more closely at this medium- and long-term revenue and spending trends and publishing a medium-term budget outlook would allow for long-term budget planning.
format	Economic & Sector Work :: Policy Note
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Managing Medium-Term Fiscal Challenges
title_short	Managing Medium-Term Fiscal Challenges
title_full	Managing Medium-Term Fiscal Challenges
title_fullStr	Managing Medium-Term Fiscal Challenges
title_full_unstemmed	Managing Medium-Term Fiscal Challenges
title_sort	managing medium-term fiscal challenges
publisher	Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/04/17570432/managing-medium-term-fiscal-challenges http://hdl.handle.net/10986/16573
_version_	1764434054444220416

Managing Medium-Term Fiscal Challenges

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