Fiscal policy can foster growth and human development through a number of different channels. These include the macroeconomic (for example, through the influence of the budget deficit on growth) as well as the microeconomic (through its influence on the efficiency of resource use). But how...

Intro -- Contents -- Foreword -- Contributors -- Acknowledgments -- Fiscal Policy for Economic Development: An Overview -- Fiscal Policy, Expenditure Composition, and Growth in Low-Income Countries -- Persistence of Fiscal Adjustments and Expenditure Composition in Low-Income Countries --...

This paper assesses the effects of expenditure composition as well as fiscal adjustment on economic growth in a sample of 39 low-income countries during the 1990s. The paper finds that strong budgetary positions and fiscal consolidation are generally associated with higher economic growth in...