Fiscal Space and Social Protection in Honduras

Abstract

One of the important discussions on fiscal policy in developing countries is how to generate resources that support economic growth and expand and improve social expending. These discussions have been formalized in the economic literature of the so-called fiscal space, a term used to refer to the effort to identify and mobilize resources to achieve economic growth and / or social development goals. This paper presents the main discussions on fiscal space, their sources and recent experiences in several countries. Especial emphasis is given to the analysis of Honduran case, both from the point of view of what has been studied up to now, and from the current revision of its fiscal and social situation. It ends by making a proposal for the fiscal spaces that Honduras could use to finance social protection.