Fiscal policy will become even more important as a tool for maintaining macroeconomic stability once production of oil and minerals begins on a commercial scale. A large part of the rents accruing from natural resources take the form of Government budget revenues and hence flow into the domestic economy through the Government budget.
How the Government spends these revenues will have a crucial impact on macroeconomic stability and on the extent to which Dutch disease affects the economy. A sound fiscal policy must be formulated in a forward looking medium to long term framework.