Latin American and the
Caribbean Compliance Hub

The Compliance Hub empowers LAC policymakers with a Multidimensional Compliance Indicator (MCI) for assessing fiscal management, gaining valuable insights, and driving informed decision-making towards sustainable fiscal policies.

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FISLAC Fiscal Sustainability For
Latin America And The Caribbean


Introducing our cutting-edge platform exclusively for Latin American and Caribbean (LAC) countries – a comprehensive fiscal rule compliance hub. It empowers LAC policymakers with a Multidimensional Compliance Indicator (MCI) for assessing fiscal management, gaining valuable insights, and driving informed decision-making towards sustainable fiscal policies.



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What is the Structure of Fiscal Rules in LAC?


From 2000 to 2022, LAC countries showed a growing interest in fiscal rules. Their numbers doubled between 2005 and 2017, largely influenced by the commodity cycle. However, in 2020, due to the impact of the COVID-19 pandemic, many of these rules were temporarily suspended



Evolution of Fiscal Rules



Number of Fiscal Rules
Implemented Across Countries



Source: All data in this section was retrieved and updated from Ulloa-Suarez, C., & Valencia, O. (2022)


Frequency of Fiscal Rules

Note: BBR stands for fiscal balance rule, ER for expenditure rule, SBR for structural balance rule, DR for debt rule, GR for Goldern Rule and RR for Revenue Rule.


Has LAC Complied With Their Fiscal Rules?


How is compliance measured?



On average, compliance with fiscal rules stands at 69% across countries and years. Yet, during times of fiscal stress, such as in 2009, 2014, and 2020, compliance experiences a significant decline as challenges in meeting fiscal targets arise.



Numerical Compliance in LAC Countries
(2000-2022)




Compliance Rate by Type of Rule (2000-2022)



Note: ER stands for expenditure rule, BBR for fiscal balance rule, SBR for structural balance rule, and DR for debt rule.



Compliance rates vary across different types of rules in LAC countries. The structural balance rule shows the highest compliance, while the expenditure rule has the lowest compliance. The fiscal balance and debt rules also demonstrate relatively high compliance.





Compliance Rate by the Combination of Rules (2000-2022)




In LAC countries, the use of multiple fiscal rules, particularly debt and balance rules, has enhanced compliance. This practice aims for sustainability and alignment of objectives, contributing to the region’s high compliance.



Note: ER stands for expenditure rule, BBR for fiscal balance rule, SBR for structural balance rule, and DR for debt rule.



IDB Fiscal Rule Compliance Dataset for Latin America and the Caribbean (LAC)

This dataset offers detailed numerical compliance data for fiscal rules across LAC countries. It provides a comparison between fiscal objectives and actual outcomes, with country-specific details available in the Compliance Tracker on this dashboard.

Please remember to cite the accompanying policy note in your research.

“Sustaining Compliance with Fiscal Rules: A Future at Risk? (Ulloa-Suarez and Valencia, 2024)”

Fiscal Rules by Country

The following chart shows the fiscal rules by countries since the first year of implementation. The boxes are color-coded according to the type of rule. Boxes with diagonal white line pattern indicate that the fiscal rule was suspended for that period





Budget-balance rule

Expenditure rule

Revenue rule

Structural balance rule

Debt rule

No rule

Suspended

Golden Rule





2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

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Note: i) The rule's suspension can result from the activation of the Escape Clause or other factors. ii) Data obtained from local sources.

Multidimensional Compliance Indicator (MCI)



Utilizing MCI empowers policymakers to develop a comprehensive understanding of a country's fiscal well-being and pinpoint areas that demand focus or enhancement. This multidimensional approach facilitates a more nuanced and all-encompassing evaluation of fiscal rule compliance, enabling informed decision-making and precise policy measures.

Between 0 to 100. The higher the better.

0

100



Select a country for more details




Note: MCI is uses annual data on fiscal rules for 14 LAC countries from 2000 to 2022, and it considers the design features of the rules and information about numerical compliance.






Want to Learn More?

Select a country and visit the compliance tracker

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Created by: FISLAC by IDB

Data Source: FISLAC calculations by IDB

Important note: Estimations are only informative and must not be taken as final values for decision-making by the authorities