Public Expenditure in Latin America: Trends and Key Policy Issues

36 Pages Posted: 7 Feb 2007

See all articles by Benedict Clements

Benedict Clements

International Monetary Fund (IMF) - African Department

Christopher Faircloth

International Monetary Fund (IMF)

Marijn Verhoeven

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: February 2007

Abstract

This paper examines trends in government spending in Latin America from the mid-1990s to 2006. It also examines key policy issues, including the cyclicality of spending, public investment, public employment, and social expenditures. It finds that primary expenditures have trended upward for the past ten years as a share of GDP, driven by increases in current spending, in particular for social expenditures. Fluctuations in real spending have continued to follow a procyclical pattern. The paper finds that there is substantial scope to improve the efficiency of public investment, public employment, and social spending.

JEL Classification: E6, H5, O54

Suggested Citation

Clements, Benedict and Faircloth, Christopher and Verhoeven, Marijn, Public Expenditure in Latin America: Trends and Key Policy Issues (February 2007). IMF Working Paper No. 07/21, Available at SSRN: https://ssrn.com/abstract=961751

Benedict Clements

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Christopher Faircloth

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Marijn Verhoeven (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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