Fiscal rules—permanent quantitative constraints on government finances—are an important tool to help mitigate the macroeconomic challenges associated with managing natural resource revenues. This paper sheds light on large gaps in compliance and oversight of fiscal rules, and provides policy recommendations on how fiscal rules can be further strengthened.
The oil, gas, and mining sectors of many countries often seem to be surrounded by secrecy and suspicions of vast wealth gone missing through a combination of bad deals with foreign companies, poor management, and corruption.
Natural resource revenue sharing will be part of upcoming discussions on federalism in Myanmar. This paper outlines the current state of fiscal decentralization, describes the size and location of extractive activities, and shares good practices for resource revenue distribution, drawing on international experiences.