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An Examination Of Public Sector Finances In Central America

Author

Listed:
  • Glenn Jenkins

    (Queen's University, Kingston, On, Canada)

  • CARLOS GUTIERREZ

Abstract

This paper examines the public sector finances of four Central American Countries in terms of revenues, expenditures and deficits for the period of 1980 to 1986. The large central government deficits are a reflection of the steady growth of current expenditures, including rising public sector debt service payments, increases in military spending, and transfer to other levels of government. The prevailing tax structures have not been able to increase revenues adequately. Furthermore, they are the source of serious distortions in the allocation of productive resources. Comprehensive tax reform is advocated for all of the countries to give them the fiscal foundation to carry out their public sector obligations.

Suggested Citation

  • Glenn Jenkins & CARLOS GUTIERREZ, 1988. "An Examination Of Public Sector Finances In Central America," Development Discussion Papers 1988-01, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:72
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    More about this item

    Keywords

    public sector; financing; Central America;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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