01747cas a2200241 a 4500 AALejournalIMF014372 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484370964 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Asia and Pacific Dept. Republic of Palau : Selected Issues. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (27 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper describes Palau's fiscal challenges and policy options to achieve long-term fiscal sustainability. Palau relies heavily on compact grants, and without continued fiscal consolidation over the medium term, the fiscal position will become unsustainable after these grants expire in FY2024. The fiscal sustainability analysis uses an intertemporal budget constraint model to show that reducing the current deficit excluding grants by about 8 percentage points of GDP during FY2014-19 would ensure Palau's long-term fiscal sustainability. The paper also discusses the role of tourism in Palau and identifies policy priorities to further promote this sector and sustain growth. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2014/111 Full text available on IMF http://elibrary.imf.org/view/journals/002/2014/111/002.2014.issue-111-en.xml IMF e-Library