Towards a More Comprehensive Assessment of Fiscal Space
Quantitative measures of fiscal space
These guidelines provide a systematic review of the most common definitions and measures of fiscal space. They examines the evolution of fiscal space measures, outlines the pros and cons of each measure and pinpoints key factors that could help strengthen existing approaches to allow a more comprehensive assessment of fiscal space. By illustrating how different measures paint considerably different pictures of an economy’s fiscal space, the paper underscores the need to use a dashboard of indicators.