DIY fiscal sustainability analysis

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DIY fiscal sustainability analysis

DIY fiscal sustainability analysis

Monday, March 19, 2012
  • DIY
If you want to know just how sustainable Malaysia’s deficits really are, the IMF Excel spreadsheet template is available online.

There’s a whole bunch of terminology surrounding fiscal sustainability, such as the structural balance mentioned here. Getting the different definitions of the fiscal balance straight can be a bit of a head-spinner.

 

The structural balance is probably more complex than most, but it directly addresses some of the problems with using the overall balance as a measure of fiscal sustainability, and the public arguments arising therefrom.

 

Plenty of people are worried over Malaysia’s rising public debt level, pointing to its rapid average growth over the past 5-6 years. I’d point out that much of the increase relative to GDP occurred in 2009 due to a sharp drop tax revenues, something which a structural approach would cater for.

 

Read more HERE.