Hiding the Losses: Fiscal Transparency and the Performance of Government Portfolios of Financial Assets

The widespread reliance on gross government debt and deficit/surplus as indicators of fiscal performance has too often neglected the role played by other important parts of a government's balance sheet including their portfolios of financial assets. Partial measures of net worth leaves an important gap in the empirical literature on financial performance and fiscal transparency. The purpose of this paper is to examine the role played by equity investments and their performance in secondary markets. The results suggest that the performance of government equity portfolios correlates strongly with fiscal transparency to the extent that fully transparent governments are expected to generate around 7 percent higher returns than fully opaque governments. We also find strong evidence of governments willingness to inject liquidity, via investing in equities, into other sectors of the economy during periods of financial crisis confirming governments’ role as an ‘investor of last resort’

Rebuilding Fiscal Institutions in Post-Conflict Countries

This paper reviews the key challenges in rebuilding fiscal institutions in post-conflict countries. Based on IMF technical assistance advice, it proposes a three-step framework for the creation or re-establishment of well-functioning public finance institutions: (i) creating a proper legal framework for fiscal management, (ii) establishing a central fiscal authority, and (iii) designing appropriate tax policies while simultaneously creating simple tax administration and expenditure management arrangements.post-conflict, fiscal instutions, public expenditure management, tax administration

Postconflict Countries: Strategy for Rebuilding Fiscal Institutions

This paper reviews the challenges and experiences in rebuilding fiscal institutions in postconflict environments, based on advice from the IMF's Fiscal Affairs Department to selected countries. The recommended strategy involved a three-step process of (i) creating a proper legal framework for fiscal management, (ii) establishing a central fiscal authority and a mechanism for co-ordinating foreign assistance, and (iii) designing appropriate tax policies while simultaneously creating simple tax administration and expenditure management arrangements. The advice was tailored to the circumstances of postconflict countries, and in some cases involved transitional measures that were not first best from an efficiency standpoint. In a similar vein, recommendations on revenue administration and expenditure management focused on the most basic tasks and procedures. In providing advice, care was taken to ensure that these measures were consistent with the eventual transformation to a modern fiscal management system.fiscal policy, tax, institutions, conflict

Economic Reform in Arab Countries

The paper reviews the main structural reform issues facing Arab countries in the remainder of the 1990s. While the nature, extent, and implications of the policy challenges differ among individual countries in the Arab region, several aspects are common to a large number of them. Accordingly, the paper identifies a framework consisting of a core of key reforms that would address these countries’ structural weaknesses and assist them in exploiting their considerable economic potential.Structural adjustment;oil countries, taxation, poverty alleviation, fiscal policy, economic integration, tax system, trade liberalization, exchange rate regimes, aggregate demand, oil prices, quantitative restrictions, balance of payments, oil revenues, external trade, tax reforms, terms of trade, international trade, per capita income, international trading, public finance, fiscal imbalances, liberalization efforts, government budgets, multilateral trade, trade liberalization efforts, multilateral trade liberalization, trading system, fiscal dimensions of adjustments, exporting countries, exchange rate mechanism, external trade liberalization, fiscal consideration, taxable income, tax collection, formal sector, prudential regulation, investment flows, fiscal deficits, tariff rate, average tariff rate, trade reforms, export diversification, debt service, tax administration, domestic prices, domestic banking system, world economy, import-substitution industrialization, trade taxation, indirect tax, central government budget, fiscal impact, trade regime, average tariff, expansionary fiscal, fiscal adjustments, tax reform, free zones, economic cooperation, exchange rate regime, debt service burdens, public finances, oil exporters, tax systems, fiscal loss, regional integration, transitory shocks, process of adjustment, price liberalization, rates of protection, liberalization policies, indirect taxes, government budget, return on capital, export markets, fiscal accounts, domestic banks

Evaluating Government Employment and Compensation

of the IMF. The views expressed in this Note are those of the authors and do not necessarily represent those of the IMF or IMF policy. JEL Classification Numbers: Keywords

Fiscal Management of Scaled-Up Aid

This paper discusses the role of fiscal policy and fiscal institutions in managing scaled-up aid. In an environment of volatile scaled-up aid, fiscal policy formulation should be anchored in medium-term frameworks, incorporating a longer-term view of potential resource availability and spending plans. There is merit in smoothing expenditures over time so that all programs are adequately funded. The paper argues that wage-bill ceilings should be used in Fund-supported programs only in exceptional cases. The paper also discusses basic reforms for strengthening public financial management systems for effective utilization of scaled-up aid flows.Public finance;Government expenditures;Fund policies;expenditure, fiscal policy, public expenditure, public spending, fiscal institutions, expenditures, mtef, public financial management, mtff, expenditure efficiency, fiscal balance, medium-term fiscal framework, annual budget, fiscal targets, public debt, health expenditure, expenditure policy, budget process, medium-term expenditure, fiscal framework, poverty-reducing expenditures, budget support, expenditure tracking, government spending, expenditure management, fiscal management, fiscal policy response, public expenditure management, fiscal indicators, fiscal reports, medium-term expenditure framework, expenditure tracking surveys, fiscal reporting, fiscal aggregates, fiscal affairs department, tax rates, fiscal policy formulation, medium-term expenditure frameworks, fiscal transparency, fiscal planning, tax base, fiscal developments, fiscal affairs, composition of public spending, expenditure levels, fiscal deficit, classification of expenditures, medium-term fiscal frameworks, expenditure framework, capital expenditures, expenditure plans, fiscal sustainability, fiscal accountability, budgetary systems, fiscal frameworks, public expenditure review, expenditure allocations, fiscal adjustment, budgetary allocations, expenditure chain, expenditure management reform, fiscal policy expenditure, public expenditure management reform, public expenditure reviews, public expenditure tracking, health expenditures, expenditure programs, public expenditure tracking surveys, medium-term fiscal projections, higher expenditure, expenditure authorization, debt service, general budget, budget constraint, fiscal position, expenditure frameworks, fiscal programming, fiscal authority, fiscal policies, administrative classification of expenditure, fiscal revenues, fiscal target, budgetary rules, budgetary process, efficiency of government expenditures, fiscal years, tax revenues, fiscal policy framework, foreign interest payments, central government budget, fiscal issues, government budget, aggregate demand, sustainable fiscal balance, recurrent expenditures, expenditure projections, tax revenue, budgetary institutions, poverty-reducing ? expenditure, poverty-reducing expenditure, fiscal module, public finances, fiscal projections, fiscal problems, classification of expenditure, tax bases, managing public expenditure, budget management, tax effort, fiscal risks, fiscal space, expenditure priorities, central fiscal, tax incentives, fiscal report, expenditure composition, tax policy, budget systems, fiscal variables