Munich Personal RePEc Archive

Future Fiscal Adjustments and Debt Sustainability

Razzak, Weshah (2020): Future Fiscal Adjustments and Debt Sustainability.

[thumbnail of MPRA_paper_103380.pdf]

Download (651kB) | Preview


We estimate a VAR, which summarizes the dynamics of five variables, the real price of oil, the long-run real interest rate, real GDP, the primary fiscal balance-GDP, and debt-GDP. We make dynamic stochastic projections and use the data to compute the annual primary fiscal balance required to achieve a particular debt-GDP target over the period from the end of the sample in 2018 to 2024. For Oman to achieve a debt-GDP target between 60 to 20 percent in 2024, it has to increase its annual primary fiscal balance by about OR 4 Billion (USD 10.4 Billion) either by increasing revenues, decrease expenditures, or both. This figure increases substantially if Oman wants to achieve the target earlier than 2024.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.