| Description |
1 online resource |
| Series |
IMF working paper ; no. WP/14/44 |
|
IMF working paper ; no. WP/14/44.
|
| Contents |
Cover; Table of Contents; I. Introduction; II. Macroeconomic Developments since 2001: A Brief Overview; Tables; Table 1. Revenue and Expenditure (Period Averages, in percent of GDP); III. The Model; III. Model Calibration; Table 2. Calibration of the Model; IV. Alternative Methods of Fiscal Adjustment; A. Using Traditional Fiscal Instruments to Reduce Fiscal Deficit; Figures; Figure 1. Increasing Profit or Wage Tax Rate; Figure 2. Cutting Government Consumption of Nontraded Goods; Figure 3. Cutting Government Consumption of Traded Goods |
|
B. Efficient Energy Investment Program and Fiscal AdjustmentTable 3. Efficient Energy Investment Program; Figure 4. Efficient Energy Investment Program; C. Temporarily Raising Official Energy Prices; Table 4. Efficient Energy Investment Program and Delayed Investment in other Infrastructure; D. Temporary Borrowing in the Regional Bond Market; Figure 5. Efficient Energy Program and Delayed Non-Energy Investment; Figure 6. Efficient Energy Program and Delayed Non-Energy Investment: Raising Energy Prices |
|
E. Pushing Harder for Growth: Frontloaded Infrastructure Investment and Aggressive Borrowing in the Regional versus Eurobond MarketFigure 7. Efficient Energy Program and Delayed Non-Energy Investment: Regional Borrowing; Table 5. Efficient Energy Investment Program and Frontloaded Investment in other Infrastructure; Figure 8. Efficient Energy Investment and Frontloaded Non-Energy Investment: Regional Borrowing; Figure 9. Efficient Energy Investment and Frontloaded Non-Energy Investment: Eurobond Borrowing; VI. Concluding Remarks; Appendix |
|
A. On Public Investment Efficiency, Rates of Return, and GrowthB. On Public Investment Efficiency, Rates of Return, and Growth; References |
| Summary |
Senegal's fiscal deficit and public debt have been on the rise in recent years owing partly to an ailing and inefficient oil-based energy sector. In this paper we use a two-sector, open-economy, dynamic general equilibrium model to investigate the effects of varying fiscal policy instruments one at a time and of policy packages that increase public investment in energy and infrastructure in scenarios with varying degrees of debt finance and with different types of supporting fiscal adjustment. Lowering the fiscal deficit by raising taxes and cutting government expenditure has adverse effects on growth, real wages and the supply of public services. Senegal does not need, however, to undertake such difficult fiscal adjustment. A public investment program that coordinates new investment in low-cost hydroelectric, coal or gas-fired power with a phased contraction of the oil-based sector raises the total supply of energy by 70 percent, increases real wages and real GDP, stimulates private investment, and significantly reduces the fiscal deficit in the medium long term. More aggressive investment programs borrow against future fiscal gains to combine new energy investments with either delayed or frontloaded investments in non-energy infrastructure. These programs lead to much higher real wages and real GDP while keeping public debt sustainable and the fiscal deficit low in the medium and long term |
| Bibliography |
Includes bibliographical references |
| Notes |
Print version record |
| Subject |
Fiscal policy -- Senegal
|
|
Economic stabilization -- Senegal
|
|
Electric power distribution -- Senegal
|
|
Renewable energy sources -- Senegal
|
|
Economic stabilization
|
|
Electric power distribution
|
|
Fiscal policy
|
|
Renewable energy sources
|
|
Senegal
|
| Form |
Electronic book
|
| Author |
Issoufou, Salifou, author.
|
| ISBN |
1306674158 |
|
9781306674157 |
|
9781484335932 |
|
1484335937 |
|
