Pakistan will struggle to widen tax base

2019 ◽  
Keyword(s):  
Central Bank ◽  
Financial Support ◽  
Budget Deficit ◽  
Annual Growth ◽  
Fiscal Year ◽  
Tax Base ◽  
Content Type ◽  
Revenue Collection ◽  
The Government

Significance He will release a mini-budget on January 23. Revenue collection in the first half of fiscal year 2018/19 (July-June) showed 3.8% annual growth. The government targets a budget deficit of 5.1% of GDP for 2018/19, down from 6.6% in 2017/18. Impacts Financial support from allies will shape Pakistan’s diplomacy, Islamabad likely to align more closely with Saudi policy. By avoiding an IMF bailout for now, Pakistan would be able to avoid US pressure during talks with the Fund. The central bank will likely undertake monetary tightening.

Ghana's IMF bailout to persist despite souring ties

2016 ◽  
Keyword(s):  
Central Bank ◽  
Budget Deficit ◽  
Credit Rating ◽  
Gdp Growth ◽  
Content Type ◽  
Bank Financing ◽  
Electricity Crisis ◽  
Manufacturing Activity ◽  
The Government ◽  
The Imf

Significance Earlier this month, the government passed a bill allowing for central bank financing of the budget deficit, contravening a core requirement in its agreement with the Fund. Earlier breaches led to the fourth tranche of the bailout (worth 114 million dollars) being withheld. Impacts Other donors will withhold aid disbursements until the impasse between Accra and the IMF is resolved. The electricity crisis will continue to undermine manufacturing activity, contributing to disappointing GDP growth. Ivory Coast's pro-business reforms mean it could attract investors deterred by Ghana's economic woes. Prolonged tensions with the IMF coupled with a deterioration its Ghana's fiscal metrics may drive a credit rating downgrade.

Donor commitments could kickstart Madagascar recovery

2016 ◽  
Keyword(s):  
Central Bank ◽  
Financial Support ◽  
Content Type ◽  
Credit Facility ◽  
The Government ◽  
Made In ◽  
Governance Reforms

Significance The aim was to build on progress made in July when the government secured a three-year IMF Extended Credit Facility (ECF) programme. The country’s central bank reported that donors committed to over 6.4 billion dollars in financial support, with subsequent estimates as high as 10 billion dollars. Impacts Passing budgetary measures will prove difficult due to a thin parliamentary majority. The government will likely prioritise EU reform and infrastructure demands -- Brussels has pledged 800 million euros over four years. Failure to implement governance reforms could lead to a suspension of IMF funding.

Bangladesh risks growth by not confronting bad debt

2019 ◽  
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Banking System ◽  
Fiscal Year ◽  
Gdp Growth ◽  
Potential Growth ◽  
Content Type ◽  
High Court ◽  
The Government ◽  
Bad Debt

Subject Bad debt in Bangladesh's banking sector. Significance The High Court last month stayed until June 23 a circular issued by the Bangladesh Bank, the central bank, that appeared to benefit borrowers who had defaulted on loans from the country's banking system. Meanwhile, Bangladesh registered 7.9% GDP growth in the fiscal year ending June 2018. Impacts The government will dismiss worries about a potential growth slowdown, pointing to forecast GDP growth of 8.1% in 2018/19. The Bangladesh Bank's circular would hurt banks already burdened with losses because of provisioning against bad debt. Banks may try to reduce their exposure to single borrowers.

Egypt faces deeper cuts amid stubborn fiscal deficit

2015 ◽  
Keyword(s):  
Budget Deficit ◽  
Labour Force ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Wage Bill ◽  
Content Type ◽  
The Government ◽  
Interest Payments ◽  
Modest Level ◽  
Energy Subsidy

Subject Egypt's fiscal outlook. Significance The Ministry of Finance has issued figures for budget performance after five months of the 2014-15 fiscal year, which started on July 1, 2014. The deficit is higher than in the previous year, but this is mainly because of the distorting effect of the massive transfusion of Gulf Arab aid after the removal of President Mohammed Morsi in July 2013. Other aspects of the accounts are more encouraging, including a rise in non-oil tax revenue and the likelihood that energy subsidies will fall sharply. Impacts The 2014-15 budget deficit is likely to be close to the target of 10% of GDP, assuming a modest level of Gulf aid in the coming months. The relatively strong rate of economic growth will help to moderate the deficit as a percentage of GDP. Increased tax revenue and lower energy subsidy costs will help to moderate the budget deficit. However, it will remain high in absolute terms due to the bloated wage bill and increased interest payments. The government will therefore have to take politically sensitive decisions, either trimming the state labour force or further subsidy cuts.

Kenya budget strains escalate debt distress risks

2015 ◽  
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Fiscal Year ◽  
Content Type ◽  
Revenue Collection ◽  
Finance Minister ◽  
Fiscal Space ◽  
The Government ◽  
Bank Risks ◽  
Economic Outlook

Subject Kenya's economic outlook. Significance Finance Minister Henry Rotich on October 21 announced intentions to implement austerity measures, but without providing details. The July budget for fiscal year 2015-16 revealed shortfalls in revenue collection, expenditure overruns and higher domestic borrowing costs. While thin on details, Rotich's announcement signals that the government may be acknowledging the liquidity crunch that has concerned the Central Bank of Kenya (CBK) since June. Impacts Mounting debt obligations could narrow fiscal space available for growth-enhancing infrastructure. Growth expectations for 2015-16 of 6.0% (compared to 5.3% in 2014-15) are over-ambitious. High domestic interest rates may spur non-performing loans, raising bank risks and hurting real estate growth.

Budget deficit may prompt Egypt to return to IMF

2015 ◽  
Keyword(s):  
Budget Deficit ◽  
Fiscal Year ◽  
Bond Issue ◽  
Content Type ◽  
Goods And Services ◽  
Revenue Streams ◽  
The Government ◽  
The Imf

Subject Egypt's budget deficit woes. Significance President Abdel Fattah el-Sisi has approved the budget for the 2015-16 fiscal year (July-June) after insisting that the deficit target be reduced from 9.9% of GDP to 8.9%. Reducing the budget deficit to a sustainable level over the next three to four years is a key government objective. However, finance ministry efforts to develop new revenue streams and trim expenditure have so far met resistance. Impacts If the government does resort to the IMF, it will face pressure for more resolute measures to cut the deficit and to devalue the pound. After the success of its first international bond issue, the government is likely to return to the markets later this year. The finance ministry wants to introduce VAT for goods and services, but will face pressure from business to limit its scope.

scholarly journals Productivity and Responsiveness of Tax Yields in Nepal

NUTA Journal ◽  
2018 ◽  
Vol 5 (1-2) ◽  
pp. 17-26
Author(s):  
Bashu Dev Dhungel
Keyword(s):  
Dominant Role ◽  
Secondary Data ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Elasticity Coefficient ◽  
Tax Base ◽  
Revenue Collection ◽  
The Government ◽  
The Individual ◽  
Log Linear

 This study is based on secondary data published by the government of Nepal covering a period between 1990/91 and 2013/14 fiscal year. The various sources of revenue as a proportion of the GDP have been analyzed during this period. An adjusted revenue series have been prepared for total and the individual taxes by using the Sahota method of proportional adjustment. The Productivity and Responsiveness of taxes has been measured by estimating the elasticity and buoyancy co-efficient using double log linear regression equation. The findings reveal that indirect tax has been playing a dominant role for total tax revenue collection. Indirect tax is considered regressive in nature and is not justifiable on equity ground and progressiveness. Regarding elasticity and buoyancy, the elasticity coefficient of overall taxes are less than unity and it is inelastic in nature. But, buoyancy coefficient of overall taxes is greater than unity. This high buoyancy but low elasticity of all major tax heads signifies the need for additional government efforts of expanding the tax base to increase revenue and lower its resource gap.

Colombia’s economy will begin to recover in 2021

2021 ◽  
Keyword(s):  
Central Bank ◽  
Financial Support ◽  
Household Consumption ◽  
Economic Recovery ◽  
Inflation Expectations ◽  
Content Type ◽  
National Statistics ◽  
Support Measures ◽  
The Government

Significance This partial revival, fuelled by an increase in household consumption, nevertheless fell short of offsetting the devastating effects of the strict COVID-19 lockdown measures imposed in the first half of the year. The economy closed 2020 with a 6.8% contraction, according to the latest figures published by the national statistics agency. Impacts The Central Bank will maintain its accommodative stance to support economic recovery; inflation expectations remain well anchored. The weakness of the ruling coalition in Congress will see Duque struggle to advance his agenda. Protests will resume as restrictions ease and the government ends financial support measures delivered over the last year.

Australian central bank holds rate as growth slips

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Interest Rates ◽  
Labour Markets ◽  
Content Type ◽  
Commercial Lenders ◽  
The Government ◽  
Roll Out ◽  
Growth Forecasts

Significance The RBA has cut its growth forecasts amid rising job losses, weakening demand and increasing signs that the latest COVID-19 lockdowns will continue to slow the economy until the pace of the vaccine roll-out programme can be increased. Impacts Although the RBA is independent, the government will hope it keeps rates low ahead of the elections due next year. Commercial lenders could raise interest rates independently of the RBA if inflation remains high. Wage pressures will re-emerge as labour markets tighten but may be mitigated by the extent of underemployment. Economic growth will be uneven across the country in coming months as pandemic-related restrictions vary by location.

Indonesia’s new investment ministry faces headwinds

2021 ◽  
Keyword(s):  
Central Bank ◽  
Foreign Investment ◽  
Short Term ◽  
Sovereign Wealth Fund ◽  
Content Type ◽  
Speed Up ◽  
The Government ◽  
Roll Out

Significance The government hopes greater domestic and foreign investment can help turn around the pandemic-hit economy. The governor of Bank Indonesia (BI), the central bank, last week said GDP should grow by 4.6% in 2021, compared with last year’s 2.1% contraction. Impacts Indonesia will count on private vaccination, whereby companies buy state-procured jabs for their staff, to help speed up its roll-out. The Indonesia Investment Authority, a new sovereign wealth fund, will prioritise attracting more investment into the infrastructure sector. Singapore will continue to be Indonesia’s largest source of FDI in the short term.

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