Republic of the Marshall Islands: Selected Issues and Statistical Appendix

Volume/Issue: Volume 2008 Issue 186
Publication date: June 2008
ISBN: 9781451825947
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Topics covered in this book

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Investments and Securities-General , Economics- Macroeconomics , Public Finance , Taxation - General , ISCR , CR , CTF , regime , CTF investment , CTF balance , RMI government , CTF income , CTF committee , CTF contribution , Extra-budgetary funds , Tax administration core functions , Fiscal consolidation , Fiscal sustainability , Pacific Islands , Global

Summary

The strategy that has the best chance of allowing the Republic of Marshall Islands (RMI) to achieve fiscal sustainability after FY2023 involves substantial fiscal consolidation. The alternative (policy action) scenario involves a substantial fiscal adjustment starting in FY2009. Projections show that this strategy can succeed in achieving budgetary self-sufficiency. Fiscal consolidation will be difficult, and will have to be accompanied by structural reforms to improve real growth. Substantial fiscal consolidation in the short term is necessary to achieve budgetary self-sufficiency after 2023.