Wage Policy and Fiscal Sustainability in Benin /

This paper analyzes the impact of Benin's public wage policy on medium and long-term fiscal and debt sustainability. The main findings are that if the wage bill continues to increase in line with recent trends, debt and fiscal sustainability could be compromised by excessive deficits or by crow...

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Bibliographic Details
Main Author: Lundgren, Charlotte
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2010.
Series:Departmental Papers; Departmental Paper ; No. 2010/004
Online Access:Full text available on IMF
Description
Summary:This paper analyzes the impact of Benin's public wage policy on medium and long-term fiscal and debt sustainability. The main findings are that if the wage bill continues to increase in line with recent trends, debt and fiscal sustainability could be compromised by excessive deficits or by crowding out growth-enhancing public investment. The study shows that with fiscal policy guided by targets aimed at maintaining debt sustainability, population growth, and the intent to progress towards the Millennium Development Goals, there will be little space for civil service pay increases. Limiting wage bill increases to maintain fiscal sustainability is only a first step in the authorities' broader objective of reforming the civil service.
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Physical Description:1 online resource (22 pages)
Format:Mode of access: Internet
ISSN:2616-5333
Access:Electronic access restricted to authorized BRAC University faculty, staff and students