Public Financial Management and Its Emerging Architecture
Back Matter

Back Matter

Author(s):
M. Cangiano, Teresa Curristine, and Michel Lazare
Published Date:
April 2013
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    Index

    Note: Boxes, figures, notes, and tables are indicated by b, f, n, and t, respectively.

    Accountability

    • for decentralization reforms, 384

    • effectiveness of framework-based fiscal rules, 41

    • as element of PFM reform, 26, 27b

    • evasion of substantive rules, 37

    • of fiscal councils, 216

    • fiscal reporting for, 265

    • in fiscal risk management, 180

    • for medium-term budget frameworks, 160–62

    • for natural resource wealth management, 399, 405–6

    • role of fiscal councils, 221

    • status of central fiscal agencies, 60

    • strategies for strengthening, 27b

    • structural units of, 33

    • trends in public finance management, 225

    • use of performance information for, 238

    Accounting framework, PFM, 11–12

    • budget framework and, 55–57

    • computerized systems, 266

    • deficit devices in, 262b

    • for fiscal reporting, 260–63

    • public-private partnership management, 331–33

    • spectrum of, 263, 263f

    • See also Accrual basis accounting;

      • Accrual budgeting;

      • Budgeting institutions in developing countries;

      • Cash basis accounting

    Accrual basis accounting, 11–12

    • accrual budgeting and, 340, 357

    • appropriation of cash for noncash charges, 57

    • budget framework and, 57–58

    • capacity to influence behavior, 56–57

    • cost of implementation, 267

    • definition, 339–40

    • in fiscal reporting, 260, 261–67

    • fiscal risk management, 183

    • impediments to adoption of, 266–67

    • PFM reforms, 26

    • potential shortcomings of, 57

    • public investment management and, 317–18

    • purpose, 56

    • as standard for national reporting, 56

    • standard indicators in, 265–66, 266t

    • standards, 266

    • structure of, 261f, 263

    • trends, 35, 183, 263–67, 280

    • See also Accrual budgeting

    Accrual budgeting, 12–13

    • accrual accounting and, 340, 357

    • advantages, 349–53

    • application, 341–42, 358

    • appropriations and, 342–45, 344b, 345b, 346–47

    • asset valuation in, 355–36

    • budget documentation, 348

    • capacity requirements, 355–56, 357

    • capital asset management in, 353

    • cash budgeting and, 341–42, 349, 355, 357

    • cash control under, 345–48

    • cost and liability information in, 352

    • current knowledge base, 339

    • definition, 340, 341b

    • fiscal indicators in, 349, 350b

    • implementation challenges, 353–56

    • information technology system, 357–58

    • long-term sustainability, 351

    • phases for implementation, 356

    • political support for, 356–57

    • prerequisites for implementation, 356–57, 358

    • reporting, 351

    • susceptibility to manipulation, 354–55

    • See also Accrual basis accounting

    Advanced economies, 1

    • fiscal rule implementation, 96, 114, 115f, 120–21, 120f

    • lessons from medium-term budget framework experiences of, 170–72

    • PFM capacity, 5n

    • public investment financing, 327–28

    Aggregate constraint within fiscal rule, 51

    Aggregate expenditure ceilings, 144, 144n, 154, 155–56, 163, 170

    Algeria, 396

    Andrews, M., 426, 429

    Angola, 393

    Appraisal process, 321–22

    Australia

    • accounting practice, 341b, 343–44, 344b, 345, 347, 348, 349, 350b, 354–55, 356n

    • cash and debt management, 289n

    • fiscal council, 212b

    • fiscal reporting in, 41, 266, 269, 270, 271t, 274, 274t, 278–79

    • fiscal responsibility laws, 82, 86

    • fiscal risk management, 192

    • medium- and long-term budget framework, 47n, 144, 145, 154, 156, 157, 161, 163–65, 168–69, 170

    • national development plan, 317b

    • natural resource wealth, 395b

    • performance measurement in, 228, 229, 233, 236b, 239

    • program and policy reviews, 32, 232

    • response to 2008–09 financial crisis, 244, 334

    • revenue forecasts after global financial crisis, 169f

    Austria

    • accounting practice, 350b

    • debt management office, 302

    • fiscal council, 211

    • fiscal rules, 128

    Automatic balance mechanism, 47n

    Azerbaijan, 398, 399, 402b

    Baseline estimates, 23, 44, 45

    Baumol’s disease, 79n

    Belgium, 208, 212b, 215

    Benchmarking, 228, 294, 296, 296n

    Bentham, Jeremy, 259

    Biafra, 394

    Bolivia, 366

    Botswana, 189, 395b, 396

    Bouckaert, G., 424

    Brazil, 24n, 41, 42, 123, 192

    Brooke, P., 424–25

    Budget balance rules, 111, 113t, 118–19

    Budget frameworks, PFM

    • accrual basis accounting and, 57–58

    • composition of expenditures, 58–59

    • fiscal risk management in, 188–90

    • as means of incrementalism, 58

    • in natural resource-rich countries, 402–4

    • resource allocation function, 58

    • in support of fiscal rules, 109–10

    • top-down processes, 61, 100, 109–10, 150–51

    • See also Accounting framework, PFM;

      • Budgeting institutions in developing countries

    Budgeting institutions in developing countries, 14

    • challenges for reform, 414–17, 428

    • developmental significance of, 412, 413

    • diagnostic instruments, 422–23

    • framework for, 417–21

    • historical evolution, 411, 412–13, 414t, 428

    • influence of donor countries on reform, 420–21

    • institutional capacity for, 417–18

    • pace of reform, 415, 416

    • political context of reform, 417, 418–20, 418f

    • reform in post-conflict countries, 416

    • risk assessment and management, 426–27

    • sequencing of reform, 423–28

    • strategies for successful reform, 428–29

    Budget reports, 267–68

    Cambodia, 289n, 366, 370, 424n, 425

    Canada

    • accounting practice, 341b, 348, 350b

    • expenditure rules-and-reviews, 247–49, 248b

    • fiscal council, 212b

    • fiscal risk management, 189

    • natural resource wealth, 395b, 398

    • performance management in, 238–39, 244

    • program and policy reviews, 231

    • response to 2008–09 financial crisis, 244, 249–50, 334

    Capital expenditure, 122, 353

    Capital market access, 190, 295, 309

    Cash basis accounting

    • definition, 339–40

    • in fiscal reporting, 260–61

    • need for, 57

    • purpose, 56

    • risk management in, 183, 293–94

    • shortcomings of, 261

    • structure of, 261f, 263

    Cash management and debt management active cash management, 290–91

    • banking and payment systems for, 285–88, 286b

    • cash buffer reserves, 290–91, 299

    • cash planning process, 285, 288–90, 298–99, 306–7

    • cash surpluses, 299–300, 299n

    • challenges for emerging market and developing economies, 306–8

    • challenges in, 298–306

    • conceptual trends in PFM, 283

    • control of cash under accrual budgeting, 345–48

    • coordinated and integrated approach to, 283–84, 304–6, 309, 310

    • definitions, 285

    • developing domestic government debt markets, 296–98, 297b

    • expenditure control, 98

    • fragmentation risks, 300–301

    • future challenges and opportunities, 308–10

    • goals of, 283

    • importance of, 284, 291

    • institutional setting for, 309

    • legal frameworks for, 308

    • lessons from 2008–09 financial crisis, 298–99

    • medium-term debt management strategies, 295–96

    • public debt securities growth, 291, 291f

    • resistance to institutionalization of, 306

    • risk analysis in, 292–94, 294b

    • role of central bank in, 287–88

    • technological advances for, 285

    • time focus, 283

    • trends and innovations in, 284–98, 302–3, 304–5

    Cash management units, 288–89, 290, 299, 300

    Cash planning, 285, 288–90, 298–99, 306–7

    Cash reserves, 290–91, 299–300

    Central African Economic and Monetary Community, 84n, 117

    Central fiscal institutions

    • banking and payments systems

    • efficiency, 287–88

    • budgetary institution reforms, 417–18

    • in cash planning, 289–90

    • challenges to, 60

    • debt management offices and, 302, 302n

    • fiscal councils versus, 205–6, 222

    • fiscal reporting coverage, 269–70, 271t, 280

    • fiscal rule coverage, 122

    • macroeconomic management, 59–60

    • relations with sectoral agencies and departments, 61

    • resistance to cash and debt management reforms, 306

    • role in risk management, 182–84, 197–99, 202

    • roles and capacities, 61–62

    • top-down budgeting, 61

    • transition to accrual accounting, 263–64, 264t

    • use of performance information, 227, 230, 231f, 232f

    • using budgets to motivate performance, 234–35

    Chad, 396, 398, 399, 400

    Chile

    • budgeting procedures, 62

    • fiscal council, 212b

    • fiscal risk management, 188

    • National Investment System, 321, 323b

    • natural resource wealth, 42, 395b, 396, 397b

    • performance management in, 244

    • performance measurement in, 83n, 239

    • response to 2008–09 financial crisis, 244

    China, 239, 412n

    Code of Good Practices on Fiscal Transparency, 3, 4n, 22–23

    Colombia

    • debt management office, 302

    • entitlement spending, 24n

    • fiscal risk management, 188

    • fiscal rules, 123, 128

    • performance measurement in, 239

    Conflict

    • decentralization reforms to promote peace, 366

    • information and, 29–30

    • management challenges, 30

    • PFM reform in post-conflict institutions, 416

    Congo, Democratic Republic of the, 366

    Congressional Budget and Impoundment Control Act, 216–17, 220

    Congressional Budget Office, U.S.

    • costing function, 211, 217

    • distinguishing features, 205, 216, 218

    • independence, 217

    • lessons from experiences of, 217–18

    • location within bureaucracy, 214–15

    • nonpartisan status, 217

    • origins, 216–17

    • public education role, 217–18

    • responsibilities, 213b, 217

    • staffing, 215n, 217

    Consolidation, fiscal

    • cyclical adjustment, 79

    • fiscal responsibility laws and, 81n, 84b, 92–93, 111

    • medium-term budget framework and, 10, 168, 170

    • performance information and, 11, 63, 226, 243, 244–50, 251

    • response to global financial crisis, 168–69, 244–50

    • shock response, 46

    Contingent liabilities, 23, 35

    • challenges for central cash management, 298–99

    • database of, 49–50

    • definition, 176–77

    • disclosure of, 48–49, 191–92, 278

    • explicit versus implicit, 48n, 50, 177–78

    • in fiscal risk management, 48–49, 50, 175, 176–77, 177b, 187–88

    • in onset of global financial crisis, 72–73

    • role of fiscal councils, 208

    • sources of, 48

    • strategies to limit risk, 51

    Corruption, in natural resource-rich states, 393

    Cost accounting systems, 53

    Cost-at-risk models, 292, 293–94

    Cost overruns, 315

    Costs

    • accrual accounting implementation, 267

    • accrual budgeting implementation, 355–56

    • accrual budgeting information on, 352

    • of information, 28

    Currency unions

    • fiscal rule implementation, 114–17, 115f, 118

    • See also Supranational organizations

    Cyclical adjustment of fiscal rules

    • expenditure ceilings and, 129

    • rationale, 42–43

    • role of fiscal councils, 209

    • in upward drift of government spending, 79

    Debt Management Guidelines, 307–8

    Debt management offices, 283, 288, 290, 292, 293, 294, 300, 301, 302–4, 302t, 304b, 305

    Debt rules, 83

    • automatic correction mechanisms in, 125–26

    • implementation to date, 117

    • limitations, 84b, 111

    • purpose, 84b, 111

    Debt-servicing costs, 293

    Decentralization reforms, 12, 13

    • accountability, 384

    • capacity for implementation, 383–84

    • case studies, 372–81

    • challenges to bridging PFM reforms with, 364–72

    • contextual considerations in, 357–68, 364, 372, 381–82

    • coordination of participation in, 384–85

    • definition, 363

    • fiscal rule implementation and, 83–84, 101

    • forms of, 368

    • innovative approaches to, 384

    • institutional frameworks for, 367, 384

    • lessons from case studies, 381–85

    • linkage to PFM reforms, 363–64, 382, 385

    • in low-capacity and aid-dependent countries, 370

    • medium-term budget framework and, 315

    • objectives, 365, 366

    • obstacles to allocative efficiency in, 61–62, 365–66, 366n

    • to promote democratic governance, 366

    • research needs, 385

    • role of central financial institutions in, 198

    • role of international development partners, 372

    • sequencing, 369–70

    • spending authority, 54, 365–66

    • starting points, 368–69

    • strategic implementation, 370–72, 383

    • trends, 312, 363

    • See also Subnational governments

    Deficit bias hypothesis, 2, 2n, 79, 109, 140n

    Deficit devices, 262b

    Deficit rules, 83, 89–90

    Democratization, decentralization to promote, 366

    Demographic projections, 149–50

    Denmark, 225

    • accounting practice, 343, 343n, 350b

    • fiscal council, 212b, 215

    • national development plan, 317b

    • performance measurement in, 228

    Depreciation, appropriation of cash for, 57

    Derivatives, 292, 292n

    Developing and emerging market economies, 13–14

    • accounting systems, 227

    • capital market access, 295

    • cash planning in, 289–90

    • fiscal councils in, 205, 205n, 207, 211, 222–23

    • fiscal rule design and implantation in, 80, 86, 89, 93, 103, 115f, 117, 119, 120, 120f, 130

    • future effects of global financial crisis, 309

    • government banking and payments systems, 287

    • government debt markets, 296, 298

    • natural resource-rich, 392b

    • performance management in, 226

    • risk disclosure in, 278

    • risk management in, 293

    • significance of fiscal management in, 412

    • treasury single accounts in, 285–86

    • See also Budgeting institutions in developing countries

    Diamond, J., 425–27

    Direct performance budgeting, 229, 229b, 235

    Donors. See Supranational organizations

    Drought insurance, 195b

    Dutch disease, 390–92, 390n

    Earthquake insurance, 195–96

    Eastern Caribbean Currency Union, 84n, 116–17, 118

    Ecuador, 396, 400

    Enforcement and sanctions

    • effectiveness of transparency initiatives, 206–7

    • fiscal responsibility laws, 91–92, 101–2

    • fiscal rules, 40, 60, 71, 72, 116b, 125–26, 206–7

    Enhanced balance sheets, 277, 277t Entitlement programs, 24, 58–59

    Equatorial Guinea, 392

    Ethiopia, 368

    European Commission, 3n, 5, 5n, 92, 221, 221n, 266

    European Community, 40–41, 42, 47 n

    European Economic and Monetary Union, 70, 178

    European System of Regional and National Accounts, 342n

    European Union

    • bond markets, 296

    • Cohesion Funds, 315

    • disclosure of risk analysis findings, 191

    • fiscal councils, 211

    • fiscal reporting in, 268

    • fiscal rules, 84–85, 107, 125, 126, 128

    • performance measurement in, 236b

    • public investment financing, 328

    • public-private partnerships in, 330b

    • risk analysis, 278

    • sanctions regime, 91, 92

    • Stability and Growth Pact, 5n, 85, 114, 116b, 125, 161, 207n, 314, 342n, 349

    • Structural Funds, 315

    Executive branch

    • relations with legislative branch, PFM

    • reform and, 419–20

    • use of performance information, 238–40

    Expenditure reviews, 231–32, 247–49

    Expenditure rules/ceilings

    • definition, 138b

    • design features, 112n, 113t, 170

    • effectiveness, 170

    • fiscal rules and, 108, 129

    • implementation to date, 118–19, 247–49

    • within larger policy context, 144n

    • legislative frameworks for, 120–21

    • in medium-term budget frameworks, 100, 138b, 141, 146b, 151, 152, 153, 161

    • purpose, 111–12, 155

    • shock response flexibility, 111–12, 129

    Extractive Industries Transparency Initiative, 406, 406b

    Federalism theory, 365

    Filmer, Robert, 259

    Financial management information systems, 4n, 285, 286–88, 289

    Finland

    • fiscal rules, 112n

    • medium-term budget framework, 145, 149, 154, 155–56, 157, 161, 165–66

    • performance measurement in, 228

    Fiscal Compact and Six Pack, 5n, 91, 107, 114, 116b

    Fiscal councils, 10–11

    • accountability, 216

    • as advisory bodies, 208–9

    • alternative arrangements, 222–23

    • as auditing bodies, 209

    • contribution to fiscal market discipline, 221

    • effect on expenditure efficiency, 222

    • versus fiscal authorities, 205–6

    • fiscal rules and, 220–21

    • implementation considerations, 205, 223

    • implementations to date, 211, 212–13b

    • independence of, 207–8

    • location within bureaucracy, 214–15

    • political support for, 208, 211–14

    • public education role, 217–18, 221

    • rationale, 206–8, 223

    • reporting requirements, 215–16

    • requirements for success, 211–16

    • review of government forecasts by, 209–11

    • role and functions, 205, 208–11, 214, 221–22

    • stabilization role, 221–22

    • staffing, 215, 215n

    • trends, 4

    • See also Congressional Budget Office, U.S.;

      • Fiscal Policy Council of Sweden

    Fiscal gap analysis, 47

    Fiscal illusion, 140n

    Fiscal Policy Council of Sweden, 205

    • budget of, 219

    • distinguishing features, 216, 220

    • independence of, 219

    • lessons from experiences of, 219–20

    • location within administration, 215, 218

    • origins, 218

    • reporting requirements, 219

    • role and functions, 213b, 219

    • staffing, 218

    Fiscal reporting, 11–12

    • accounting approaches, 260–67, 261f

    • continuous disclosure, 278–79

    • coverage, 267–70, 269t, 279, 280

    • enhanced balance sheet, 277, 277t

    • forward-looking data, 274–77

    • future prospects, 274–79, 280

    • for government accountability, 265

    • importance of, 259

    • influence on decision making, 259

    • lessons from 2008–09 global crisis, 260, 278, 280

    • on natural environment, 279

    • risk assessment, 277–78

    • sector-specific analysis, 276

    • sovereign balance sheet, 270

    • standardization, 266, 272–24

    • trends in, 259–60, 280

    • See also Monitoring and reporting;

      • Performance information

    Fiscal responsibility laws

    • adoption of accrual accounting and, 265

    • amending existing rules establishing versus new rules, 88

    • deficit rules, 83

    • definition and distinguishing characteristics, 80–81

    • design considerations, 80, 88–93

    • design of fiscal policy process in, 93–95

    • as developmental process, 95–96, 103

    • discretionary policy versus, 86

    • escape clauses, 9, 84b, 90, 105t

    • evidence of impact of, 85

    • fiscal and legal institutions for, 101–2

    • fiscal forecasting for, 98–99

    • fiscal policy development capacity for, 99–100

    • fiscal rule development, 93, 95–96

    • implementation to date, 81, 82n, 84n, 85–86, 105t

    • integration with overall legal framework, 83–85

    • intergovernmental coordination, 101

    • intermediate objectives, 93, 94t

    • local government coverage, 89

    • medium-term fiscal framework development in, 82, 95, 100–101

    • monitoring and reporting system, 97–98

    • PFM capacity for implementing, 80, 81, 96–102

    • PFM requirements to support, 102b

    • rationale for, 85–88, 103

    • rationale for fiscal rules in, 84b

    • reputational capital of, 81, 87

    • salient issues, 8, 9, 80

    • sanctions provisions, 91–92

    • scope of coverage, 88–89

    • standards and variables in, 88

    • statement of objectives and targets, 89–90

    • transitional requirements, 92–93

    • types of, 81–85, 103

    Fiscal risk management, 10, 23, 35

    • accounting systems and, 183

    • asset-liability management, 186

    • in budgeting, 188–90

    • in budgeting reform, 426–27

    • in cash-based budgeting and accounting, 293–94

    • cash planning in, 289

    • current shortcomings in, 199–200

    • cycle, 180–82, 181f, 202–3

    • database for, 49–50

    • in debt management operations, 292–94, 294b

    • definition, 175

    • disclosure of findings, 48, 190–92, 201

    • external relationships considered in, 180–81

    • fiscal reporting, 277–78

    • future challenges and opportunities, 202–3, 308–9

    • importance of, 175

    • incorporating macroeconomic risk in fiscal analysis, 184–86

    • information needs, 180, 182–83, 184

    • institutions for, 197–98

    • lessons from 2008–09 financial crisis, 175, 178–79, 199–202, 292–93

    • mitigation strategies, 193–94, 194b

    • monitoring and reviewing efforts in, 198–99, 201

    • new techniques, 202

    • pooled and concentrated risk, 50

    • portfolio-based approaches in, 292, 301

    • principles for risk allocation, 193–97, 201

    • prioritization of mitigation efforts, 196, 197f, 201

    • procedural innovations to limit risk, 50–51

    • in public investment, 326, 334–35

    • in public-private partnerships, 326, 331, 332t

    • public sector net worth, 186–87

    • purpose, 48, 51, 181

    • rationale, 35

    • reserve capacity planning, 101

    • responsibility for, 182–84, 201

    • rules to constrain risky behavior, 51

    • sources of risk, 175, 176–79

    • treatment of contingent liabilities in, 48–49, 50, 175, 187–88

    • trends in, 175–76, 202

    Fiscal Risk Matrix, 184

    Fiscal Risks: Sources, Disclosure, and Management, 201

    Fiscal rules and frameworks

    • adoption of accrual accounting and, 265

    • advantages, 84, 85

    • aggregate constraint within, 51

    • automatic correction mechanisms, 125–26

    • capacity to respond to shocks, 9, 72

    • complexity, 108n

    • country-specific design, 96

    • cyclical adjustment, 42–43, 70, 129, 209

    • definition, 9, 108

    • effective implementation, 65

    • effectiveness, 81n, 206–7

    • effectiveness of fiscal councils and, 214

    • enforcement challenges, 38–39

    • to enhance medium-term expenditure frameworks, 45–46

    • escape clauses, 123–25, 124t, 130–31, 133t

    • excluded items, 122, 123f

    • fiscal councils and, 220–21

    • fiscal responsibility laws in progression to, 93, 95–96

    • implementation concerns, 8, 36–38, 65–66, 109, 129–30

    • implementation to date, 38–39, 112–19, 114f, 115f, 118f, 119f, 120f, 128t, 130, 132t

    • incentives to curtail entitlement spending, 59

    • information and process in support of, 66

    • information flows as determinant of effectiveness of, 39–40

    • institutional and economic coverage, 122, 123f

    • institutions and policies in support of, 109–10

    • lessons from 2008–09 financial crisis, 71

    • motivation to evade, 37

    • objectives, 38, 51, 73, 108–9, 130

    • as PFM reform instrument, 21, 23, 26–27, 27b, 36

    • political context, 40–41, 95, 96

    • proscriptive design to prevent evasion or manipulation, 41–43

    • rationale for, in fiscal responsibility laws, 84b

    • response to global financial crisis, 39–40, 107, 113, 126–30, 127t, 134–35t

    • in rules-and-review approach, 247

    • scope of, 36

    • statutory basis, 120–21, 121f, 122t

    • trends and future prospects, 3, 5, 130–31

    • types of, 110–12, 113t, 118–19

    • See also Expenditure rules/ceilings;

      • Fiscal rules and frameworks

    Fiscal year, 34–35

    Fixed aggregate ceiling, 144

    Fixed ministerial ceiling, 144

    Forecasting

    • institutional responsibility, 210

    • role of fiscal councils, 209–11

    Forward estimates, 144–45

    France, 3n, 420n

    • budgetary institutions, 413, 414t, 428

    • debt management office, 302

    • fiscal reporting, 272

    • medium-term budget framework, 144, 145, 154, 155

    • performance management in, 244

    • performance measurement in, 228

    • response to 2008–09 financial crisis, 244, 334

    Gabon, 397b

    Gateway model of project management, 321, 322t, 325f

    General economic risk, 175, 176

    Generational accounts, 275

    Germany

    • fiscal council, 212b

    • fiscal rules, 112, 123, 124, 125, 126

    • response to 2008–09 financial crisis, 334

    Ghana, 395b, 420

    Global financial crisis (2008–09)

    • capacity of PFM to respond to shocks, 68–70, 72–73

    • cash and debt management operations and, 284, 309–10

    • effects on public-private partnerships, 334

    • fiscal consolidation response to, performance information in, 243, 244–50, 251

    • fiscal outcomes, 8, 178–79

    • fiscal rules and, 39–40, 113, 126–30, 127t

    • future challenges for developing and emerging market economies, 309

    • future challenges in debt management, 308–9

    • impact on public investment, 333–34

    • lessons for cash planning and management, 298–99

    • lessons for fiscal reporting, 260, 278, 280

    • lessons for fiscal risk management, 175, 178–79, 199–202, 292–93

    • lessons from, 5–6, 67–73, 79, 207

    • market perception of government default risk, 167–68, 167f

    • medium-term budget frameworks and, 69, 167–70

    • national responses, 63–64, 68–69

    • numerical fiscal rules in response to, 107

    • performance information in stimulus response to, 243–44

    • precrisis PFM and, 8, 70–71

    • test of PFM reforms, 5, 8, 21–22

    • warning of, 260

    Golden rule, 111, 122

    Government Finance Statistics Manual, 266–67, 272, 273–74, 277, 349, 350b

    Greece, 207n, 260

    Group of Eight, 307

    Group of Seven, 8, 275t

    Group of Twenty, 179, 179f

    Heavily Indebted Poor Countries Initiative, 307

    Historical evolution of fiscal and budget reforms, 3–4, 226, 411, 412–13

    Hungary

    • debt management office, 302

    • fiscal council, 212b, 214

    Iceland, 148, 299

    Incrementalism

    • budgeting practice in promotion of, 58

    • challenges to effective allocation to resources, 24

    • incentives favoring, 58

    • managing medium-term expenditures, 44

    Independent projections and assessments, 10, 23

    • central agency roles and capacities, 61–62

    • effectiveness of, in improving PFM, 27b, 40

    • for financial accountability, 27b

    • implementation concerns, 223

    • for performance budgeting, 54

    • rationale, 60

    • reform pressures from, 63–64

    • role of fiscal councils, 208, 217, 219–20

    • See also Monitoring and reporting

    India, 124, 368

    Indonesia

    • decentralization and PFM reform experience, 373–76

    • disclosure of risk analysis findings, 191

    • fiscal risk management, 183n, 185b, 192

    • fiscal rules, 112

    • government banking arrangements, 285–86

    • natural resource wealth, 395b

    • subnational governments, 368

    Information

    • accounts, for PFM reform, 55–57

    • asymmetric interests in uses of, 30–31

    • capacity to change behavior, 31, 63–64, 73–74

    • capacity to respond to shocks, 72

    • for central agency budget oversight, 61–62

    • cost of, 28

    • for direct performance budgeting, 235

    • effectiveness of fiscal rules and, 39–40

    • for efficient resource allocation, 97–98

    • for enhancing fiscal policy processes, 94–95

    • evasion of substantive rules, 37

    • for fiscal consolidation, 246

    • fiscal forecasting, 98–99

    • for fiscal responsibility laws, 97–99

    • fiscal risk database, 49–50

    • for fiscal risk management, 180, 182–83, 184, 199

    • framework for PFM analysis, 22–23

    • lessons from 2008–09 financial crisis, 70

    • for medium-term budget framework, 43–44, 147–50

    • myths about performance measurement, 241

    • overload risk, 15, 28–29

    • as PFM reform instrument, 21, 26–27, 27b

    • producers and users of, 63–64

    • rule-making cautions, 65–66

    • scope of financial transaction reporting, 35

    • significance of, in PFM reform, 2, 6, 7, 15, 27–28

    • as source of conflict, 29–30

    • use of performance data for resource allocation, 52–55

    • See also Fiscal reporting;

      • Performance information;

      • Technological advances;

      • Transparency

    Infrastructure, PFM

    • accounting framework, 55–57

    • budget frameworks, 57–59

    • elements of, 11–13.

    • See also specific element

    • risk insurance, 196

    • significance of, in reform effort, 55

    Infrastructure projects

    • cost overruns, 315

    • optimism bias in, 324b

    • rationale for medium-term focus, 314–15

    • See also Public investment management

    Institutional factors in fiscal management, 5–6, 76, 178, 367

    International financial institutions. See Supranational organizations

    International Monetary Fund, 2n, 221n, 416

    • debt management strategies, 303, 308

    • debt relief initiatives, 295, 303

    • fiscal reporting standards, 49n, 192, 264, 266, 272, 273–74, 277

    • framework for analysis of PFM reforms, 22

    • PFM diagnostics, 3, 22, 420n

    • risk management standards and guidelines, 10, 221

    • transparency rules, 4n, 22, 192, 206, 207n

    • See also Government Finance Statistics Manual

    International Organization of Supreme Audit Institutions, 216

    International Public Sector Accounting Standards, 266, 272–74, 273f, 276, 277, 349, 351

    Iraq, 366

    Ireland

    • debt management office, 301, 301n, 302

    • fiscal council, 212b

    • long-term planning, 320, 321n

    • national development plan, 317b

    • performance measurement, 294, 296n

    Italy, 128, 236b

    Jamaica, 123

    Japan, 112, 212b, 278

    Kazakhstan, 398, 399

    Kenya, 368, 372

    Korea, Republic of, 225

    • expenditure rules-and-reviews, 247–49, 248b

    • fiscal council, 213b, 215

    • fiscal risk management, 188, 196

    • response to 2008–09 financial crisis, 334

    Kosovo, 366, 370, 371, 373, 376–78

    Kuwait, 393, 397b, 398–99

    Lebanon, 289n

    Legal frameworks in PFM

    • for debt management, 308

    • fiscal responsibility law implementation, 101–2

    • in natural resource-rich countries, 400, 406–7

    • salient issues, 80

    • scope of, 102

    • See also Fiscal responsibility laws

    Legislative bodies

    • economic analysis and policy development in, 60

    • executive branch relations with, PRM reform and, 419–20

    • obstacles to use of performance information, 238

    • role in maintaining financial accountability, 27b

    Lithuania, 117

    Long-term sustainability projections, 23

    • accounting frameworks, 56–57

    • accrual budgeting and, 351

    • in budgeting decisions, 57–58

    • debt management focus, 283

    • fiscal reporting, 275

    • management of natural resource revenues, 400–401, 402b

    • objectives, 47

    • as PFM objective, 23

    • policy response to, 47

    • public investment management and, 320, 334

    • rationale, 15, 35

    • risk analysis, 293–94

    • rule-making cautions, 65–66

    • See also Medium-term budget frameworks;

      • Sustainability of fiscal position

    Low-income countries

    • fiscal rule implementation, 114, 115f, 119, 120, 120f

    • macroeconomic management in, 59–60

    • maintaining medium-term expenditure frameworks, 46

    • natural resource-rich, 392b, 399, 404

    • PFM capacity, 5n

    • public investment financing, 328

    • risk management in budgeting reform, 426–27

    • sequencing of decentralization and PFM reforms, 370

    • special considerations in PFM reform, 5

    • See also Budgeting institutions in developing countries;

      • Developing and emerging market economies

    Luxembourg, 112

    Maastricht Treaty, 84–85, 91

    Macedonia, former Yugoslav Republic of, 368–69

    Macroeconomic policy and performance projections for medium-term budget frameworks, 149–50, 149f

    • risk analysis, 184–86, 277–78

    • role of central fiscal institutions, 59–60

    Malaysia, 395b

    Managerialist reforms, 25b

    Manual on Fiscal Transparency, 192

    Market-oriented reforms, 25b

    Mauritania, 399, 400

    Mauritius, 123

    Medium-term budget frameworks, 8–10, 12, 15, 23

    • accountability mechanisms, 160–62

    • adherence through instability and shocks, 46

    • adoption of accrual accounting and, 265

    • binding forms, 144, 163, 165, 166–67, 172

    • budget process for, 150–51

    • carryover provisions, 160

    • competing objectives in, 143

    • country-specific factors in design of, 170

    • credibility of annual budget and, 147–48

    • debt management focus, 283

    • definition, 137

    • enforcement through aggregate constraint, 51

    • evasion strategies, 37, 42

    • excluded expenditures, 154t

    • expenditure planning outcomes, 165–66

    • expenditure prioritization in, 156–58, 171–72

    • features of successful models, 150–51

    • fiscal reporting, 274–75

    • fiscal rules and, 45–46, 108

    • forecasting accuracy, 164f

    • forward-looking expenditure controls, 158–60

    • growth volatility and, 166–67, 166t

    • implementation sequence, 36

    • implementation trends, 3

    • indicative forms, 143–44

    • information for, 43–44

    • legislative frameworks for, 120–21

    • lessons from experiences in advanced economies, 170–72

    • macroeconomic and demographic projections for, 149–50, 149f

    • market perception of government default risk and, 167–68, 167f

    • mechanism of action, 139, 140

    • models, 137–39, 143–45, 145t, 170

    • multiyear spending limits, 152–56, 172

    • in natural resource-rich countries, 400–401

    • objectives, 24, 43, 44–45, 51, 137, 139–43, 150, 311

    • office of, 43, 45

    • optimism bias in, 316

    • performance budgeting and, 316

    • performance of different models, 162–70

    • preconditions for successful implementation, 145–51

    • to promote effective resource allocation and use, 141–43, 166–67

    • in public investment management, 315–16, 320, 334

    • public project selection mechanisms in, 325

    • requirements of fiscal responsibility laws, 100–101

    • reserves and margins, 158–59, 159t

    • response to 2008–09 financial crisis, 69, 167–70

    • rule-like features, 71

    • terms and concepts, 138b

    • time horizon, 137, 316

    Medium-term debt management strategies, 295–96

    Medium-term expenditure frameworks, 420

    • donor support for, 420

    Medium-term fiscal frameworks components, 100

    • development of, 100–101

    • in development of fiscal responsibility laws, 95

    • for public investment management, 314–15

    • purpose, 100, 190

    • requirements of fiscal responsibility rules, 82

    • role of fiscal councils, 208

    Mexico

    • fiscal council, 213b, 215

    • fiscal rules, 123

    • natural disaster risk mitigation, 195

    • natural resource wealth, 393, 400

    • performance measurement in, 228, 239

    • response to 2008–09 financial crisis, 334

    Ministry of Planning, 313

    Mongolia, 83n

    Monitoring and reporting

    • accrual budgeting, 348, 349, 350b, 351

    • continuous disclosure, 278–79

    • diagnostic instruments for assessing budgeting systems, 422–23

    • expenditure reviews, 231–32, 232f

    • financial balance sheet, 4

    • for fiscal responsibility laws, 97–98

    • fiscal risk management, 10, 198–99

    • information overload in, 241

    • to make fiscal market discipline more effective, 221

    • market risk exposure, 293

    • medium-term debt management strategies, 296

    • naming and shaming programs, 237

    • natural resource wealth management, 405

    • performance information for, 225, 228

    • program and policy evaluations, 231, 232f, 233

    • public investment risk management, 326

    • risks in fragmented debt management, 301

    • role of debt management offices, 301

    • role of fiscal councils, 209

    • significance of, in fiscal management, 6

    • See also Fiscal reporting;

      • Independent projections and assessments

    Namibia, 117

    Naming and shaming programs, 234, 237

    National development planning, 316, 317b

    National Investment Systems, 321, 323b

    Natural disaster

    • national risk mitigation insurance, 195–96, 195b

    • sources of fiscal risk, 176, 176n

    Natural resource funds, 396–98

    Natural resource-rich countries, 13–14

    • accountability and transparency in, 399, 405–6

    • asset management in, 404–5

    • budget process, 402–4

    • causes of PFM problems in, 389

    • challenges and opportunities for, 389–94, 408

    • country experiences to date, 394–400, 409

    • current PFM research base, 389

    • current set of, 390, 391f, 392b

    • fiscal reporting, 279

    • legal frameworks in, 400, 406–7

    • macroeconomic risk analysis, 184–86

    • medium- and long-term planning in, 400–401, 402b

    • natural resource funds for fiscal management in, 396–98

    • PFM reform objectives in, 409

    • PFM reforms for, 400–407

    • political influences in fiscal management, 398

    • preexisting institutions as fiscal outcome factor for, 394

    • rationale for strengthening PFM systems in, 408

    • as rentier states, 393

    • revenue stabilization funds, 189–90

    • separate bodies for resource revenue management, 398–400

    • sequencing of reforms in, 407–8, 407t

    • sources of revenue generation in, 390

    • special operational mechanisms for fiscal management, 395–400, 408–9

    • strategies for successful management, 395b

    • structural balances, 83n

    • sustainability concerns, 393

    • volatility of revenues from, 392–93

    Netherlands

    • expenditure rules-and-reviews, 112n, 247–49, 248b

    • fiscal council, 213b, 215

    • fiscal risk management, 189

    • medium-term budget framework, 145, 154, 157, 165–66

    New public management associated reforms, 226

    • conceptual basis, 25b

    • information management in, 31

    • objectives, 24, 226

    • performance budgeting systems in, 54

    • public investment management and, 312–18, 319t, 334

    • See also Accrual basis accounting;

      • Medium-term budget frameworks;

      • Performance management

    New Zealand, 82

    • accounting practice, 341b, 343, 345, 346b, 348, 348n, 349, 350b

    • debt management office, 301n, 302, 305

    • fiscal reporting, 266, 278–79

    • fiscal responsibility laws, 41, 82, 83n, 86

    • fiscal risk management, 183, 191, 192

    • Gateway model of project management, 321, 322t

    • long-term sustainability policies, 47n

    • performance measurement in, 229, 230, 234

    Nigeria, 392, 393, 396

    Nixon administration, 216–17

    Nominal deficit rules, 83, 84b

    North Atlantic Treaty Organization, 272

    Norway

    • natural resource wealth, 189, 395b, 396, 400, 402b

    • in PEFA partnership, 3n, 420n

    • performance measurement in, 228

    Numerical fiscal rules. See Fiscal rules and frameworks

    Obama administration, 218

    Oil-producing countries

    • revenue stabilization funds, 189–90

    • See also Natural resource-rich countries

    Optimism bias, 181, 196, 198, 316, 321–22, 324b

    Organisation for Economic Co-operation and Development

    • expenditure reviews, 231–32, 232f

    • fiscal monitoring and reporting in, 191, 221, 272

    • global financial crisis outcomes, 70

    • medium-term budget framework models, 145, 145t

    • performance reforms in, 4, 52n, 227–30, 233, 245, 246–47, 250–51

    • program and policy evaluations, 231, 232f

    • public investment financing, 327, 328

    • public investment management in, 313

    • public-private partnerships in, 331

    • risk analysis, 278

    Pakistan, 192

    Panama, 123–24

    Parliamentary democracies, 60, 74, 215, 260–61, 216, 239

    Pay-as-you-go rule, 111

    PEFA. See Public Expenditure and Financial Accountability

    Pension systems, 183, 352

    Performance auditing, 54–55, 226, 294

    Performance bonuses, 235, 236b, 242–43

    Performance budgeting, 9, 11, 12, 73

    • automatic reductions or increases, 234–35, 241–42

    • challenges to implementation, 249, 251

    • definition and types of, 229, 229b degrees of implementation, 52–53

    • designs to motivate performance, 234–37

    • in fiscal consolidation, 250

    • historical evolution, 226

    • implementation trends, 251

    • information needs, 53, 54

    • medium-term budget framework approach and, 316

    • myths about, 241–42

    • objective, 51, 311

    • outputs and outcomes measurement in, 53, 73, 240–41

    • performance management and, 242

    • performance rules and, 55

    • political economy challenges to use of, 238

    • process adjustments in, 54–55

    • in public investment management, 316–17, 334

    • rationale, 51–52, 55, 227

    • resource allocation, 52

    • response to global financial crisis, 246–47

    • responsibility for, 317

    • utilization trends, 228, 229–30

    Performance information, 9, 11

    • for accountability purposes, 238

    • challenges to implementation, 249

    • as determinant of performance reform success, 243

    • effectiveness, 225, 241

    • for fiscal consolidation in response to global financial crisis, 243, 244–50, 251

    • for fiscal stimulus spending, 243–44

    • incentives to provide, 250

    • information overload, 241

    • naming and shaming programs, 237

    • political economy challenges to use of, 238

    • quality issues, 233–34

    • requirements for implementation, 251

    • trends in design and utilization, 4, 225, 226–27, 251

    • use of, in Central Budget Authority, 230, 231f, 232f

    Performance-informed budgeting, 37, 52n, 55, 229, 241, 251

    Performance management, 11

    • adjustments in managerial flexibility to motivate performance, 236–37, 242

    • definition, 226, 226n

    • gaming, 235, 242

    • performance budgeting and, 242

    • response to global financial crisis, 246–47

    • See also Performance budgeting;

      • Performance information

    Performance measurement, 228, 240–41, 241

    Performance reforms

    • benefits, 240

    • myths, 241–43

    • outcomes analysis, 240–41

    • performance information for success of, 243

    • in PFM, 227–30

    • political context, 241

    • shortcomings, 240

    • trends in design and implementation, 226–27, 250–51

    • See also Performance auditing;

      • Performance information;

      • Performance management

    Performance targeting, 54–55

    Peru, 123–24, 188

    PFM reform. See Public financial management reforms, generally

    Platform approach to reform, 67, 371, 424–25, 425f, 426–27

    Poland, 117, 125, 334

    Policy-based budgeting, 22–23

    Political context

    • accrual budgeting implementation, 356–57

    • argument for discretionary versus rules-based fiscal policies, 86

    • challenges for reform efforts, 237–40

    • challenges to reforming budgetary institutions, 417, 418–20, 418f

    • champions for process reform, 64

    • decentralization reform considerations, 364, 382

    • in development of economic institutions, 412–13

    • fiscal responsibility rule design and implementation, 87, 90

    • fiscal rules in, 39, 95, 96

    • frame-based fiscal rules, 40–41

    • incentives to curtail entitlement spending, 59

    • influence of fiscal councils, 208, 211–14, 217

    • natural resource wealth management, 398

    • of performance reforms, 241

    • PFM reforms in, 70–71, 73–75

    • resource allocation decisions, 52, 74

    • risks to budgeting reform, 426, 427

    • setting policy goals, 237–38

    • significance of, in fiscal reform, 8, 412n

    • upward drift of government spending, 79

    Pollitt, C., 424

    Portugal

    • debt management office, 301, 301n

    • fiscal council, 211, 213b

    • fiscal rules, 128

    • medium-term budget framework, 148

    Presentational performance budgeting, 229, 229b

    Primary dealer systems, 296, 296n, 297b

    Private sector service delivery

    • fiscal reporting, 268, 269, 270f, 271t

    • government banking and payments operations, 287–88

    • government service delivery compared with, 225

    • See also Public-private partnerships

    Privatization, 329

    Process adjustments

    • capacity to change behavior, 64–65

    • capacity to respond to shocks, 72

    • champions for, 64

    • elements of PFM reform, 31

    • framework for PFM analysis, 22–23

    • implementation strategies, 64–65

    • lessons from 2008–09 financial crisis, 70–71

    • to limit risk, 50–51

    • for performance budgeting, 54–55

    • permissive versus mandatory, 31

    • as PFM reform instrument, 21, 26–27, 27b, 31

    • roles and relationships in governance and, 33–34

    • as routine, 31–32

    • scope of PFM activities, 35

    • strategies for thwarting reform, 64

    • structure of decisions and, 32–33

    • time frames, 34–35

    Procurement procedures, 422

    Public Accounts Committees, 27b

    Public Expenditure and Financial Accountability (PEFA), 3, 3n, 22–23, 420, 420n, 422–23, 422n

    Public financial management reforms, generally, 363–64

    • architecture, 4, 5, 16, 25b, 73

    • behavioral change as goal of, 26

    • capacity to avert or ameliorate crisis, 72–73

    • capacity to implement, 5n, 66–67, 383–84

    • case studies, 372–81

    • country-specific considerations, 13, 15, 66–67, 364, 372, 381–82

    • definition of public financial management, 1–2

    • determinants of success, 21, 357–58

    • educational and training opportunities, 3

    • effectiveness of levers for, 63–66, 73–74

    • future prospects, 16, 63

    • historical evolution, 3–4, 411

    • implementation challenges, 232–33

    • incentives to implement, 234–37, 249–50

    • infrastructure support for, 55–62

    • institutional frameworks for, 5–6, 367

    • integrated approach, 4–5, 14

    • lessons from 2008–09 financial crisis, 5–6, 8, 67–73

    • levers and instruments, 7–8, 21, 26–27, 36, 38, 63–66, 73–74.

    • See also Information;

      • Process adjustments;

      • Fiscal rules and frameworks

    • linkage to fiscal decentralization reforms, 382, 385

    • major innovations, 1, 3, 7, 8–9, 11, 21, 25b, 38.

    • See also Fiscal rules and frameworks

    • in natural resource-rich countries, 400–408

    • objectives, 2, 14, 21, 23–26, 62, 73, 97, 311, 365, 366

    • performance reforms in, 226–30

    • political-administrative culture for, 74–75

    • political economy challenges, 237–40

    • pressure for, 225, 283

    • public investment management and, 313–14, 318–21, 334

    • recent experience, 225–26

    • requirements for fiscal responsibility laws, 80, 81, 96–102

    • role of central fiscal institutions, 59–62

    • role of international development partners, 372

    • scope of, 22

    • sequence of implementation, 26, 36, 66–67, 369–70

    • strategic implementation, 370–71, 383

    • stress of 2007–08 global financial crisis, 21–22

    • unifying framework for analysis of, 22–23

    • See also specific reform strategy

    Public investment management, 12

    • accrual basis accounting and, 317–18

    • adequate fiscal space for, 314

    • in aid-dependent countries, 328, 329b

    • appraisal process, 321–22

    • distinctive characteristics, 312

    • evolution of new frameworks and tools for, 311, 313, 316, 318–26, 334

    • external decision making in, 315

    • financing, 326–33, 335

    • goals, 311

    • impact of global financial crisis, 333–34

    • impact of new PFM innovations on, 313–14

    • incentives for effective implementation, 327b

    • institutional setting for, 313

    • long-term planning and, 320, 334

    • macroeconomic framework, 319

    • medium-term focus, 314–16, 320, 334

    • new public management tools and, 312–18, 319t

    • performance budgeting in, 316–17, 334

    • phases, 320–21

    • project selection, 324–26, 325f

    • public-private partnerships, 329–33

    • resurgence in national development planning, 316, 317b

    • risk management in, 326, 327b, 334–35

    • as share of gross domestic product, 312

    • shortcomings of traditional approach to, 312, 313

    • sources of renewed interest in, 312

    Public investment program, 313

    Public-private partnerships

    • accounting, 331–33, 353

    • challenges for central cash management, 298–99

    • definition and applications, 329–30

    • disclosure requirements, 333, 333b

    • financing costs, 331

    • for fiscal risk management, 182–83, 193, 196, 197, 201

    • global financial crisis and, 334

    • management, 330–33

    • rationale, 331

    • risk management, 326, 331, 332t

    • trends, 330

    • See also Private sector service delivery

    Public role in PFM, 27

    Repo agreements, 292, 292n

    Repo market, 299–300

    Reports on the Observance of Standards and Codes, 3, 4, 4n

    Resource allocation

    • accounting basis for, 56

    • budgeting framework for, 58

    • central agency roles and capacities, 61–62

    • determinants of, 52

    • governance structure for, 33–34

    • information needs, 97–98

    • medium-term budget frameworks for, 141–43, 166–67, 315

    • medium-term expenditure frameworks for, 24

    • as objective of PFM, 24

    • performance-based models, 52

    • time frames, 34–35

    Resource revenue accounts, 403–04

    Revenue rule, 112, 113t

    Revenue stabilization funds, 189–90

    Risk. See Fiscal risk management

    Romania, 123–24, 213b

    Rules. See Fiscal rules and frameworks

    Russian Federation (Russia), 266t, 397b

    • natural resource wealth, 402b

    São Tomé and Príncipe, 399, 400

    Saudi Arabia, 393–94, 398–99

    Scenario analysis, 184

    Schick, A., 423–24, 423n, 425

    Securities and bond markets, 296–98, 297b, 297f, 300

    Sensitivity analysis, 184, 278

    Sequencing of PFM reform implementation, 13, 21, 26

    • in budgeting institutions, 423–28

    • capacity considerations, 66–69

    • challenges, 67

    • country-specific considerations, 15, 66

    • decentralization, 369–70

    • expenditure rules, 36

    • medium-term budget framework, 36

    • in natural resource-rich countries, 407–8, 407t

    • platform approach, 67, 371, 424–25, 426–27

    • significance of, 66

    Sequestration, 126

    Serbia, 213b

    Service delivery

    • central agency roles and capacities, 62

    • goals of performance budgeting, 51

    • performance measurement challenges, 233

    • significance of, 24

    • strategies for improving, 26, 51–53

    • See also New public management;

      • Private sector service delivery

    Shocks

    • capacity of PFM to respond to, 68–70

    • fiscal rule flexibility, 9, 95, 98, 109, 111

    • maintaining medium-term expenditure frameworks, 46

    • risk disclosure, 191, 278

    • risk reduction strategies, 129, 130, 184–86, 195, 202–3

    • sources of fiscal risk, 176

    • See also Global financial crisis (2008–09)

    Six Pack. See Fiscal Compact and Six Pack

    Slovak Republic

    • fiscal council, 211, 213b

    • fiscal rules, 123–24, 125

    Slovenia, 213b

    SNI. See National Investment Systems

    South Africa, 368, 395b

    Sovereign balance sheet, 270

    Sovereign wealth funds, 404n

    Spain, 123–24, 128, 334

    Stability and Growth Pact, 5n, 85, 114, 116b, 125, 161, 207n, 314, 342n, 349

    State-owned enterprises

    • challenges for central cash management, 298–99

    • fiscal reporting, 267–68, 269, 280

    • fiscal risk management, 176, 178, 181, 182, 192, 197, 198, 199

    • public investment risks, 326

    Stimulus spending

    • lessons from 2008–09 crisis, 79, 181, 181n

    • medium-term budget framework for design of, 168

    • performance information for, 243–44

    • public investment response to global financial crisis, 333–34

    Stochastic analysis, 184–86

    Structural budget balance rule, 111, 113t, 125, 126, 129f

    Structural deficit rules, 83, 83n, 84b, 95–96

    Structural weaknesses as fiscal risk, 76, 178

    Subnational governments

    • capacity for reform implementation, 371

    • challenges for central cash management, 298–99

    • effectiveness of increased spending autonomy, 365–66, 366n

    • fiscal responsibility law system, 88–89, 101

    • fiscal risk management, 178, 182, 192

    • fiscal rule coverage, 122

    • newly created, 369

    • public investment risks, 326

    • reserve funds, 189n

    • role in PFM reform implementation, 363

    • in sequencing of PFM reforms, 369–70

    • strategies for evading fiscal rules, 41–42

    • use of performance information, 239

    • See also Decentralization reforms

    Suharto regime (Indonesia), 373

    Supranational organizations

    • accounting standards, 349

    • extractive industries standards of operation, 406, 406b

    • fiscal reporting standards, 266, 272–74

    • fiscal responsibility rules imposed by, 82, 82n

    • fiscal rule implementation, 114–17, 115f, 123f

    • influence on reform in developing countries, 420–21

    • to promote fiscal risk management, 202

    • public investment financing in aid-dependent countries, 328, 329b

    • in public sector reform implementation, 372

    • reform pressures from, 63

    • rule making, 40–41

    • See also specific institution

    Suriname, 91n

    Sustainability of fiscal position

    • challenges for natural resource-rich countries, 393

    • fiscal reporting, 275

    • fiscal rule coverage for, 122

    • objectives of medium-term budget frameworks, 139–41

    • objectives of PFM reforms, 14, 23

    • performance of medium-term budget frameworks, 163–65

    • See also Long-term sustainability projections

    Sweden

    • accounting practice, 341b

    • budgeting system, 61n, 82n, 112n

    • debt management office, 301, 301n, 302, 305

    • fiscal reporting, 272

    • fiscal responsibility laws, 41

    • fiscal risk management, 187–88, 189

    • medium-term budget framework, 145, 154, 155, 157, 161

    • performance reforms, 225, 228, 229, 294

    • risk reporting, 278

    • sustainability practices, 47n

    • See also Fiscal Policy Council of Sweden

    Switzerland, 3n, 420n

    • accounting practice, 346b, 347, 348, 349, 350b

    • fiscal rules, 123–24, 125

    Tanzania, 420

    Taxes

    • fiscal risk mitigation, 194–95

    • forward-looking fiscal reporting, 275, 277

    • revenue rules, 112

    • smoothing objectives, 181, 181n

    • sources of fiscal risk, 176

    Technological advances, 292, 303

    • for accrual budgeting, 357–58

    • in cash planning, 288–89

    • challenges in cash and debt management, 309

    • in government banking and payments systems, 287

    • in government cash and debt management, 285, 292, 303

    Thailand, 302, 421, 421n

    Timor-Leste, 399, 400

    Transparency

    • accrual budgeting reporting, 351

    • contingent liability disclosure, 48–59, 191–92

    • disclosure of fiscal risk analysis, 190–92, 201

    • effectiveness of framework-based fiscal rules, 41

    • fiscal outcomes, 206–7

    • in government securities markets, 297b

    • in management of natural resource wealth, 405–6

    • rationale for fiscal councils, 207–8

    • requirements for fiscal councils, 215–16, 215n

    • risk and financing of public-private partnership, 333, 333b

    • significance of, in PFM, 6n, 27b

    Treasury-bill market, 290–91

    Treasury single account, 289, 306

    • case example, 377

    • cash management, 285, 286–87, 298–99

    • definition, 377n

    • establishment of, 285–86

    • natural resource revenue management, 402–3

    • principles of, 286b

    Trinidad and Tobago, 395b

    Turkey, 302

    Uganda, 372, 373, 378–81, 420

    United Kingdom, 3n, 40, 420n

    • accounting practice, 341b, 344, 346b, 347, 348, 350b

    • debt management office, 305

    • evolution of budgetary institutions, 413, 413n, 414t, 416n, 428

    • expenditure reviews, 231–32

    • fiscal reporting in, 263, 264

    • fiscal responsibility laws, 86, 207n

    • fiscal risk management, 192, 201n, 278

    • Gateway model of project management, 321, 325f

    • Green Book, 321n, 324–25

    • Institute for Fiscal Studies, 211

    • long-term planning, 47n, 320, 321n

    • medium-term budget framework, 144, 146b, 154, 155, 157, 161, 162, 165–66, 168, 169–70

    • national development plan, 317b

    • Office for Budget Responsibility, 210n, 213b

    • performance measurement in, 228, 229, 236, 236b, 239, 241, 294

    • public investment financing, 328

    • reform experience, 428

    • response to 2008–09 financial crisis, 245

    • revenue forecasts after global financial crisis, 169f

    United Nations, 266, 272, 273–74, 415

    United States

    • accounting practice, 342n, 347

    • evolution of budgetary institutions, 413, 414t, 428

    • fiscal reporting in, 40, 263, 265, 269

    • fiscal risk management, 188, 189, 192

    • fiscal rules, 112

    • Gramm-Rudman-Hollings Rules, 207n

    • long-term fiscal projections, 276, 276t

    • natural resource wealth, 395b, 397b, 398, 400

    • No Child Left Behind program, 237

    • pension system, 352, 352f

    • performance management in, 244

    • performance measurement in, 234, 236, 236b, 239

    • Program Assessment Rating Tool, 232

    • Race to the Top program, 237b

    • response to 2008–09 financial crisis, 244, 245, 334

    • sequestration, 126

    • See also Congressional Budget Office, U.S.

    Value-at-risk models, 187, 292

    Venezuela, 396

    Vietnam, 368

    Wagner’s Law, 79n

    West African Economic and Monetary Union, 117, 125

    World Bank, 2n, 3n, 52n, 292, 295, 303, 307, 308, 415–16, 420–21, 420n, 422

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