Fiscal rules—permanent quantitative constraints on government finances—are an important tool to help mitigate the macroeconomic challenges associated with managing natural resource revenues. This paper sheds light on large gaps in compliance and oversight of fiscal rules, and provides policy recommendations on how fiscal rules can be further strengthened.
This paper examines the evidence of a subnational resource curse. Natural resource extraction can have positive effects, generating profits, tax revenue for government, and economic linkages to other sectors. In contrast, extraction can also have negative economic, environmental and social consequences.