Calculating Sustainable Non-mineral Balances as Benchmarks for Fiscal Policy: The Case of Botswana

No 08/117, IMF Working Papers from International Monetary Fund

Abstract: Assuming a social welfare function that smoothes expenditure, this paper calculates a sustainability benchmark for the non-mineral balance in Botswana that is based on a notion of a "permanent income" from non-renewable resources. It is derived by constructing a hypothetical annuity from revenues from these resources, which is held constant in terms of GDP. Botswana is an interesting case because current projections suggest that diamond resources could be largely exhausted within a generation.

Keywords: Working Paper; Botswana; Natural resources; Fiscal policy; Revenues; Government accounting (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: Written 2008-05-05
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