The International Monetary Fund has just published its October 2012 Fiscal Monitor, “Taking Stock: A Progress Report on Fiscal Adjustment”.
According to the report considerable progress has been made in strengthening fiscal accounts following their sharp deterioration in 2008–09.
This issue of the Fiscal Monitor takes stock of this progress, focusing on its size, composition, and implications for employment and social equity. Several conclusions emerge:
-Most countries have made significant headway in rolling back fiscal deficits
-Efforts at controlling debt stocks are taking longer to yield results.
-Countries with sizable fiscal consolidation needs have typically relied on a mix of revenue and expenditure policies.
-Both spending and revenue measures have important implications for employment and social equity, which need to be taken into account if the large consolidation efforts underway are to be sustainable.
The full report is available on the web.