Summary: Colombia has a strong fiscal framework that prescribes a prudent, albeit challenging, fiscal consolidation over the medium term. A number of changes have taken place over the past decade and a half to strengthen Colombia’s fiscal framework, including the introduction of a structural balance rule at the central government level. This rule prescribes a path of adjustment over the medium-term, which would compare well to standard benchmarks on the intertemporal use of fiscal revenue from resource wealth. However, achieving the adjustment will be challenging. An increase in revenues could help achieve the consolidation envisioned in the fiscal framework without unprecedented or undesirable reductions in expenditure.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.