This book presents some basic theoretical concepts of public finance with a particular emphasis on its impact poverty reduction. Eight case studies from Latin America and Africa illustrate how these concepts are applied in practice and the implementation issues that emerge.

The global financial crisis has reignited interest in counter-cyclical fiscal policy as a critical instrument to provide immediate economic stimulus. But policy makers are also increasingly interested in how fiscal policy will impact growth and poverty over a longer run horizon, knowing that any quick responses to exogenous shocks also affect income generation and distribution. Those effects are less well known, however, and their dynamics still represent a challenge for many countries. In this book the authors explore methodological advances and new practices for fiscal policy implementation...