Fiscal Deficits and Current Account Imbalances of the South Pacific Countries: A Case Study of Vanuatu
Jayayaman, T.K. | December 1993
Abstract
Fiscal deficits experienced by the Bank's South Pacific Developing Member Countries (SPDMCs) are due to mounting recurring expenditures and stagnant or slowly growing current revenues. Generous external aid flows in the past in the forms of grants for development expenditures and technical assistance for staff support from bilateral donors have enabled SPDMCs to meet overall fiscal deficits and, as a result, have reduced current account imbalances and contributed to exchange rate stability. The paper seeks to find out the underlying causes and forces behind the fiscal deficits and domestic resource gaps for determining the resultant current account balances in the external accounts. The conclusions arising out of a case study of Vanuatu are generally applicable to all countries in the region. Specifically in the case of Vanuatu, mobilization of domestic resources based upon a more income-elastic revenue base, by shifting away from import taxes, is called for, together with greater expenditure control and long-run fiscal reforms.
Citation
Jayayaman, T.K.. 1993. Fiscal Deficits and Current Account Imbalances of the South Pacific Countries: A Case Study of Vanuatu. © Asian Development Bank. http://hdl.handle.net/11540/3171. License: CC BY 3.0 IGO.ISSN
0117-5492
Keywords
Urban Development Finance
Trade Finance
Small Business Finance
Rural Finance
Roundtable on International Trade and Finance
Regional Development Finance
Public Service Finance
Public Finance
Project Finance
Private Finance
Nonbank Financing
Non-Bank Financial Institutions
Municipal Finance
Local Government Finance
Local Currency Financing
Limited Resource Financing
International Financial Institutions
Infrastructure Financing
Industrial Finance
Government Financial Institutions
Government Finance
Financing of Infrastructure
Financial Sector Development
Financial Regulation
Public Sector Infrastructure
Public Sector Management
Public Sector Projects
Taxation
Public Accounting
National Budget
Municipal Bonds
Local Government
Local Taxes
International Monetary Relations
International Financial Market
International Banking
Central Banks
Business Financing
Capital Resources
Budgetary Policy
Capital Needs
Corporate Divestiture
Capital Instruments
Pension Funds
Insurance Companies
Banks
Portfolio Management
Fiscal Administration
Economics of Education
Development Banks
Public enterprises
Public finance
Infrastructure projects
Development projects
Grants
Loans
Use tax
Taxing power
State of taxation
Tax-sales
Tax revenue estimating
Tax planning
Spendings tax
Special assessments
Tax administration and procedure
Sales tax
Real property and taxation
Progressive taxation
Effect of taxation on land use
Effect of taxation on labor supply
Intergovernmental tax relations
Inheritance and transfer tax
Energy tax
Investment of public funds
Intergovernmental fiscal relations
Social infrastructure
Public works
Government lending
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Citable URI
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