Ecuador: Fiscal Stabilization Funds and Prospects

Amongst a favorable economic environment, Ecuador's exceptional oil revenues have bolstered fiscal accounts. Several legal changes have created or modified funds or accounts aimed at saving, earmarking, or using oil-related revenues. This paper discusses oil-related fiscal policies, stabilization funds, and options in Ecuador. It reviews existing schemes, describes fiscal trends and underlying vulnerabilities, and offers trends and prospects for the oil-related funds and fiscal accounts. Assessing the weaknesses of the fiscal stabilization framework, it offers suggestions for improving efficiency in the use of exceptional fiscal revenues. It calls for enforceable fiscal responsibility rules, an enhanced accountability for oil revenues and the budget process, market mechanisms to hedge against oil price volatility, and a strengthened planning and prioritization of public investment.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Simón Cueva Armijos
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Fiscal Policy, Public Administration, Petroleum, Coal and Natural Gas, E62 - Fiscal Policy, E65 - Studies of Particular Policy Episodes, L71 - Mining Extraction and Refining: Hydrocarbon Fuels, L78 - Government Policy, Q43 - Energy and the Macroeconomy,
Online Access:	http://dx.doi.org/10.18235/0011387 https://publications.iadb.org/en/ecuador-fiscal-stabilization-funds-and-prospects
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