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Redefining Fiscal Space for Sustainable Development
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Redefining Fiscal Space for Sustainable Development
Fiscal space most commonly refers to the ability of a government to expand discretionary spending for priority spending. The IMF defines it as “room in a government’s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy.” The core idea is that fiscal space is a limited resource, dependent on a government’s ability to raise domestic reven…
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