TY - BOOK ID - 84542008 TI - Why Is It So Hard to Finance Budget Deficits? Problems of a Developing Country AU - Iwata, Shigeru. AU - Feltenstein, Andrew. PY - 2002 SN - 1462376185 1452791619 128125844X 9786613778031 1451897677 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Budgeting KW - Macroeconomics KW - Public Finance KW - Financial Markets and the Macroeconomy KW - Fiscal Policy KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Debt KW - Debt Management KW - Sovereign Debt KW - National Budget KW - Budget Systems KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Banking KW - Public finance & taxation KW - Budgeting & financial management KW - Bank deposits KW - Government debt management KW - Budget planning and preparation KW - Government debt planning KW - Private savings KW - Financial services KW - Public financial management (PFM) KW - National accounts KW - Banks and banking KW - Debts, Public KW - Budget KW - Saving and investment KW - Pakistan UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542008 AB - This paper examines possible ways for a developing country to finance budget deficits from domestic resources. It does so by analyzing Pakistan's National Savings Scheme (NSS). The NSS has a number of unusual attributes, and its impact upon the economy of Pakistan is not clear, but given Pakistan's chronic fiscal difficulties, the NSS is of great importance in financing the public sector deficit. We use an econometric model to analyze the relationship between the demands for NSS deposits and various other financial instruments, in particular, bank deposits, and foreign-currency deposits. We conclude that NSS and bank deposits are net substitutes, as are NSS and foreign-currency deposits. Bank deposits and foreign-currency deposits, however, seem to be neither substitutes nor complements. Also, the estimated income elasticity of the demand for bank deposits is negative, while that of foreign-currency deposits is positive, and that of NSS is not significantly different from zero. Finally, there is evidence that foreign-currency deposits are a net substitute for NSS deposits. Thus, there is some empirical evidence that foreign currency deposits have absorbed part of the demand for NSS deposits. Accordingly, the availability of foreign-currency deposits may have reduced the ability of the government to finance itself. ER -