Restructuring A Fiscal Policy Encourages Economic Growth – A Case of Selected African Countries

Abstract

Fiscal governance is strong only when a government can deliver their fiscal policy in a sustainable way, and are efficiently applied to the provision of public goods and services. This paper introduces the important topics of fiscal policy and potential effects on economic activity. The two main instruments of macroeconomic policy are monetary and fiscal policies. This paper delves the economic roles and potential methods of domestic and foreign debt debt financing. It focuses on the methodology of fiscal policy for calling and assessing the impacts of alternative tax policies, and debt management requirements. This paper also covers the basic theory, policy and practice of public finance including decentralization and intergovernmental fiscal relations in developing and transitional economies. The magnitude of government surplus or deficit is probably the single most important statistic measuring the impact of government fiscal policy on an economy.

References

1. Ademola, A. (1997). Productivity of the Nigerian Tax System: 1970–1990. AERC Research Paper 67, African Economic Research Consortium.
2. Bank of Ghana. (2003). Press Release of Monetary Policy Committee. Available at: www.bog.gov.gh (Accessed 28 November 2008).
3. Bougrand, F., Loko, B., & Mlachila, M. (2002). The Choice Between External and Domestic Debt in Financing Budget Deficits: The Case of Central and West African Countries. IMF Working Paper No. 02/79.
4. Campos, E., & Pradhan, S. (1996). Budgetary Institutions and Expenditure Outcomes: Binding Governments to Fiscal Performance. World Bank, Policy Research Department.
5. Christensen, J. (2004). Domestic Debt Markets in Sub-Saharan Africa. IMF Working Paper.
6. Fjeldstad, O.-H. (2003). Fighting Fiscal Corruption: Lessons from the Uganda Revenue Authority. World Development, 31(2), 381–400.
7. Fitzgerald, V. (2003). Global Markets and the Developing Economy. Basingstoke: Palgrave.
8. Gordon, R., & Li, W. (2005). Puzzling Tax Structures in Developing Countries: A Comparison of Two Alternative Explanations. NBER Working Paper No. W11661.
9. IMF. (2005). Nigeria: Poverty Reduction Strategy Paper – National Economic Empowerment and Development Strategy. IMF Country Report No. 05/433.
10. IMF. (2006). IMF Executive Board Completes Sixth and Final Review under Ghana’s PRGF Arrangement and Approves US$39 Million Disbursement. Press Release No. 06/234.
11. Osafo-Maafo, Y. (2001). Speech Delivered at the Launch of Ghana’s Tax Reform. Ministry of Finance, Accra.
12. Osei, R. (2006). Tax Reforms and Revenue Mobilization in Ghana. Institute of Economic Affairs, Accra.
13. Rena, R. (2006). Fiscal Policy and Economic Development in Developing Countries. International Journal of Education Economics and Development.
14. Schick, A. (1998). Contemporary Approaches to Public Expenditure Management. World Bank.
15. Seidman, L. (2003). Automatic Fiscal Policies to Combat Recessions. Armonk, NY: M.E. Sharpe.
16. Shome, P. (2004). Tax Administration and the Small Taxpayer. IMF Policy Discussion Paper, PDP/04/2.
17. Siegel, J. (1979). Legislation-Induced Distortions in Government and Private Saving Statistics. Review of Economics and Statistics, 61(1), 63–90.
18. Terkper, S. E. (1994). Ghana: Tax Administration Reforms (1985–1993). International Tax Program, Harvard University.
19. Van der Merwe, E. (2002). Policy Applications of Balance of Payments and IIP Statistics: Lessons from Uganda. IMF Balance of Payments Committee Meeting Paper, Washington, D.C.
20. Wanjala, B., & Bernadette, W. (2006). Design and Performance of Kenya’s Tax System. World Bank Research Paper.