A Framework for Assessing Fiscal Vulnerability

Author/Editor:

Murray Petrie ; Richard Hemming

Publication Date:

March 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Fiscal vulnerability describes a situation where a government is exposed to the possibility of failure to meet its aggregate fiscal policy objectives. The suggested framework for assessing vulnerability highlights four macro-fiscal aspects of vulnerability: incorrect specification of the initial fiscal position; sensitivity of short-term fiscal outcomes to risk; threats to longer-term fiscal sustainability; and structural or institutional weaknesses affecting the design and implementation of fiscal policy. Fiscal vulnerability indicators are suggested.

Series:

Working Paper No. 2000/052

Subject:

Expenditure Fiscal policy Fiscal risks Fiscal stance Public financial management (PFM)

English

Publication Date:

March 1, 2000

ISBN/ISSN:

9781451847246/1018-5941

Stock No:

WPIEA0522000

Pages:

21

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