Federated States of Micronesia

This 2002 Article IV Consultation highlights that the economic activity in the Federated States of Micronesia (FSM) is estimated to have slowed. Despite the use of the bump-up funds by some of the FSM’s four state governments to boost spending during FY2002, GDP is estimated to have grown only by 0.8 percent. The fiscal stimulus appears to have been mostly offset by an emerging fiscal crisis in Chuuk and a “wait and see†attitude of the private sector in the face of uncertainty associated with the new Compact of Free Association.Economic conditions;Article IV consultations;expenditure, fiscal position, fiscal adjustment, government expenditure, expenditures, tax revenue, capital expenditure, tax administration, capital expenditures, fiscal consolidation, debt service, fiscal retrenchment, fiscal operations, fiscal transparency, fiscal crisis, tax reform, fiscal policy, total expenditure, tax ratio, public expenditure, fiscal structure, fiscal data, government revenue, government spending, tax effort, fiscal deficit, expenditure cuts, fiscal accounts, tax policy, expenditure reform, budget management, tax collection, fiscal deficits, tax rates, tax system, public finances, fiscal prudence, expenditure survey, expenditure control, general government expenditure, fiscal measures, government fiscal accounts, government expenditures, public financial management, tax revenues, fiscal tightening, fiscal performance, fiscal mismanagement, fiscal problems, fiscal reform, tax haven, fiscal discipline