FISCAL SUSTAINABILITY AND FISCAL FATIGUE: EMPIRICAL EVIDENCE FROM LESOTHO

The data was used for a study that assessed fiscal policy sustainability and fiscal fatigue in Lesotho. Mainly, the study aims to investigate how primary fiscal balance responds to the rising debt-to-GDP ratio. Additionally, the study also seeks to examine the extent of Lesotho's fiscal fatigue. The study employs annual time series data over 1988-2020 to estimate fiscal reaction function using the ARDL co-integrating technique to capture the response of primary balance to debt ratio.