Fiscal Risks - Sources, Disclosure, and Management

Fiscal Risks - Sources, Disclosure, and Management
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Volume/Issue: Volume 2008 Issue 028
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Public Finance , PP , government account , country authorities , debt management , emerging market , annual budget , exchange rate , fiscal risk , government guarantee , government policy , Subnational government default , GDP ratio , interest rate , private sector , economic growth , risk mitigation , Fiscal risks , Contingent liabilities , Budget planning and preparation , Africa

Summary

A number of member countries have expressed interest in advice regarding disclosure and management of fiscal risks (defined as the possibility of deviations of fiscal outcomes from what was expected at the time of the budget or other forecast). This paper analyzes the main sources of fiscal risks and—building on an overview of existing practices in a wide range of countries—provides practical suggestions in this area, including a possible Statement of Fiscal Risks and a set of Guidelines for Fiscal Risk Disclosure and Management.