Analyzing Debt Sustainability: An Application of SimSIP Debt for Paraguay

Gunter, Bernhard and Wodon, Quentin (2008): Analyzing Debt Sustainability: An Application of SimSIP Debt for Paraguay. Published in: Public Finance for Poverty Reduction: Concepts and Case Studies from Africa and Latin America (edited by Blanca Moreno-Dodson and Quentin Wodon, published in World Bank Directions in Development) (January 2008): pp. 165-188.

Abstract

One of the most difficult tasks in preparing a poverty reduction strategy consists in setting priorities for public action, taking into account the cost of social programs and the capacity of the government to pay that cost. The ability to pay for social programs is determined by the resources available to the government through taxation and loans or grants within a debt and fiscal sustainability framework. This paper shows how to conduct debt and fiscal sustainability analysis using SimSIP Debt, a user-friendly Excel-based tool, with an application to Paraguay.

• Item Type: MPRA Paper
• Language: English
• Keywords: Debt sustainability; fiscal sustainability; Paraguay
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt

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