In this chapter we review and discuss the revenue forecasting practices in developing economies by first delving into the larger empirical literature on macroeconomic and fiscal forecasting in developed and developing economies and then discussing the forecasting methodologies used in developing economies by providing case studies. Literature and evidence from case studies suggest revenue forecasting in developing economies is characterized by inadequate institutional organization, bias resulting from political preferences, insufficient capacity at key agencies in charge of revenue forecasting, underutilization of data sources and methodological problems.
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