Cash Flow Analysis of Fiscal Regimes for Extractive Industries

Author/Editor:

Thomas Benninger ; Dan Devlin ; Eduardo Camero Godinez ; Nate Vernon

Publication Date:

April 26, 2024

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Mining and petroleum projects share characteristics distinguishing them from other sectors of the economy, which has led to the use of dedicated fiscal regimes for these projects. The IMF’s Fiscal Affairs Department uses fiscal modeling to evaluate extractive industry fiscal regimes for its member countries, and trains country officials on key modeling concepts. This paper outlines important preconditions needed for effective fiscal modeling, key evaluation metrics, and emphasizes the importance of transparent modeling practices. It then examines the modeling of commonly-used fiscal instruments and highligts where their economic impact differs, and how fiscal models can inform fiscal regime design.

Series:

Working Paper No. 2024/089

Subject:

Frequency:

regular

English

Publication Date:

April 26, 2024

ISBN/ISSN:

9798400274329/1018-5941

Stock No:

WPIEA2024089

Format:

Paper

Pages:

58

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