Fiscal Guardrails against High Debt and Looming Spending Pressures

Fiscal Guardrails against High Debt and Looming Spending Pressures

According to the IMF, 60% of countries have made progress in ensuring fiscal discipline since the 2008–2009 crisis.

However, in many states government spending continues to grow rapidly, driven by rising debt obligations. In some cases, budget deficits and public debt levels exceed established thresholds. Looking ahead, this creates the risk of uncontrolled debt accumulation and deterioration of economic conditions. As possible solutions, the IMF recommends introducing corrective mechanisms for fiscal rules, including strict deficit limits linked to sovereign credit ratings, as well as strengthening the role of independent fiscal institutions to enhance the transparency of fiscal policy.


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