Fiscal Adjustment in Sudan

Abstract

The paper aims to identify the optimal size, speed and composition of the medium-term fiscal adjustment in the context of Sudan''s limited oil reserves. The permanently sustainable non-oil primary balance approach suggests the need for significant fiscal adjustment over the medium term, requiring a widening of the tax base. Cross-country comparisons highlight VAT and personal income tax (as well as tax administration) as key areas for reform. The paper also suggests the need for complementary expenditure-side measures in the areas of petroleum pricing and anchoring fiscal policy in non-oil indicators.Fiscal reforms;Economic models;Government expenditures;Income taxes;Oil producing countries;Oil revenues;Oil sector;Tax administration;Tax systems;Value added tax;tax rates, fiscal adjustment, oil producing, fiscal policy, budget constraint, public debt, oil production, petroleum pricing, taxation, fiscal indicators, tax base, oil reserves, oil prices, fiscal consolidation, structural fiscal, increases in tax rates, fiscal stance, fuel prices, tax revenue, fiscal federalism, tax increases, tax policy, tax increase, oil companies, petroleum sector, fiscal performance, crude oil, government expenditure, ex-refinery price, tax collections, tax system, fiscal structure, refinery price, expenditure policy, structural fiscal reforms, revenue collection, oil producers, petroleum company, pipeline cost, tax effort, oil-producing countries, oil pipelines, oil company, fiscal effort, world oil prices, public spending, tax revenues, key fiscal indicators, public finance, fiscal reform, petroleum corporation, petroleum prices, fiscal decentralization, fiscal aggregates, petroleum exploration, structural fiscal reform, petroleum production, fiscal balances, fiscal reporting, oil- producing countries, fiscal position, oil quality, fiscal risk, fiscal deficits, oil resources, fiscal targets, expenditure adjustments, fiscal revenues, government revenue, national budget, oil exporting countries, fiscal terms, fiscal resources, accumulation of arrears, oil fields, fiscal savings, pipeline company, natural resources, oil pipeline, fiscal expenditure, tax burden, fiscal policy formulation, fiscal sustainability, increase in expenditures, budget deficit, refined products, oil and gas, spending cuts, fiscal solvency, petroleum products, primary fiscal balance, taxpayer office, tax administrations, fiscal analysis, oil exploration, production sharing contracts, capital expenditures, crude oil pipelines, fiscal balance, tax collection, fiscal deficit, fiscal reform program, natural gas, fiscal situation, fiscal burden, oil exports, oil exporters, fuel consumption