Posted on April 22, 2011 by iMFdirect
By Carlo Cottarelli
You hear a lot these days—not least from me—about the fiscal problems of advanced economies. But let’s not forget the fiscal problems that low-income countries face, though they are of a different kind.
For all too many low-income countries, government tax revenues are far from enough to meet the needs of their people. Some have made good progress, and this helped them weather the crisis better than many advanced economies—but there is an underlying, quiet crisis of inadequately resourced governments. Continue reading
Filed under: Asia, Fiscal policy, International Monetary Fund, Latin America, Low-income countries | Tagged: corruption, domestic tax revenues, efficiency, equity, fairness, governance, Millennium Development Goals, political will, poverty reduction, preferrential tax treatment, tax administration, tax evasion, tax exemptions, tax policy | 3 Comments »
Posted on March 21, 2011 by iMFdirect
By Mark Plant
(Version in Français. Listen to the podcast in English or Français.)
Governments in Africa have a prime objective—to reduce poverty. To improve living standards and create jobs, they need to provide their citizens with better health care, better education, more infrastructure. They need to build hospitals, schools, and to pay doctors, nurses, teachers.
All this costs money. How to pay for this—in a way that is both fair and efficient—is a question that all governments face.
There are limits to how much a government can receive as grants from donors or borrow from donors or the private sector. So raising tax revenues is a necessary element for governments to spend on providing more of these essential services and, in turn, reduce poverty. Continue reading
Filed under: Africa, IMF, International Monetary Fund, Low-income countries | Tagged: AFRITACS, domestic tax revenues, education, equity, health spending, infrastructure, natural resources, poverty reduction, regional technical assistance center, Sub-Saharan Africa, tax administration, tax exemptions, tax policy, taxpayer protection, technical assistance, topical trust funds, trade liberalization, Value-Added Tax, VAT | 6 Comments »