- International Monetary Fund. Fiscal Affairs Dept.
- Published Date:
- September 2011
Budgetary measures that dampen fluctuation in real GDP, automatically triggered by the tax code and by spending rules.CDS spreads
The spread on credit default swap (CDS) refers to the annual amount (in basis points of the notional amount) that the protection buyer must pay the seller over the length of the contract to protect the underlying asset against a credit event.Cyclical balance
Cyclical component of the overall fiscal balance, computed as the difference between cyclical revenues and cyclical expenditure. The latter are typically computed using country-specific elasticities of aggregate revenue and expenditure series with respect to the output gap. Where unavailable, standard elasticities (0,1) are assumed for expenditure and revenue, respectively.Cyclically adjusted balance (CAB)
Overall balance minus cyclical balance.Cyclically adjusted (CA) expenditure and revenue
Revenue and expenditure adjusted for the effect of the economic cycle (i.e., net of cyclical revenue and expenditure).Cyclically adjusted primary balance (CAPB)
Cyclically adjusted balance excluding net interest paymentsExpenditure elasticity
Elasticity of expenditure with respect to the output gap.Fiscal stimulus
Discretionary fiscal policy actions (including revenue reductions and spending increases) adopted in response to the financial crisis.General government
The general government sector consists of all government units and all nonmarket, nonprofit institutions that are controlled and mainly financed by government units comprising the central, state, and local governments. The general government sector does not include public corporations or quasi-corporations.Gross debt
All liabilities that require future payment of interest and/or principal by the debtor to the creditor. This includes debt liabilities in the form of SDRs, currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable. (See the 2001 edition of the IMF’s Government Finance and Statistics Manual and the forthcoming edition of the Public Sector Debt Statistics Guide.) The term “public debt” is used in this Monitor, for simplicity, as synonymous with gross debt of the general government, unless otherwise specified. (Strictly speaking, the term “public debt” refers to the debt of the public sector as a whole, which includes financial and nonfinancial public enterprises and the central bank.)Gross financing needs
Overall new borrowing requirement plus debt maturing during the year.Net debt
Gross debt minus financial assets, including those held by the broader public sector: for example, social security funds held by the relevant component of the public sector, in some cases.Output gap
Deviation of actual from potential GDP, in percent of potential GDP.Overall fiscal balance (also “headline” fiscal balance)
Net lending/borrowing, defined as the difference between revenue and total expenditure, using the 2001 edition of the IMF’s Government Finance Statistics Manual (GFSM 2001). Does not include policy lending. For some countries, the overall balance continues to be based on GFSM 1986, in which it is defined as total revenue and grants minus total expenditure and net lending.Policy lending
Transactions in financial assets that are deemed to be for public policy purposes but are not part of the overall balance.Primary balance
Overall balance excluding net interest payment (interest expenditure minus interest revenue).Public debt
See gross debt.Public sector
The public sector consists of the general government sector plus government-controlled entities, known as public corporations, whose primary activity is to engage in commercial activities.Revenue elasticity
Elasticity of revenue with respect to the output gap.Structural fiscal balance
Cyclically adjusted balance, corrected for one-off and other factors, such as asset and commodity prices and output compositions effects.Tax expenditures
Tax expenditures are government revenues that are foregone as a result of preferential tax treatments to specific sectors, activities, regions or economic agents.VIX
The Volatility Index (VIX) maintained by the Chicago Board Options Exchange is a measure of the market’s expectation of stock market volatility over the next 30-day period. It is a weighted blend of prices for a range of options on the S&P 500 index.
Bank for International SettlementsCAB
cyclically adjusted balanceCAPB
cyclically adjusted primary balanceCBO
Congressional Budget Office (U.S.)CDS
credit default swapCEA
Council of Economic Advisers of the White HouseCIS
Commonwealth of Independent States (WEO classification)CIT
corporate income taxEC
European Central BankEFSF
European Financial Stability FacilityEIU
Economist Intelligence UnitEME
emerging market economiesEU
financial activities taxFCR
financial crisis responsibility feeFII
Fiscal Indicators IndexFSC
financial stability contributionFTT
financial transaction taxGDP
gross domestic productGFSM
Government Finance Statistics ManualGFSR
Global Financial Stability ReportGSE
International Monetary FundLAC
Latin America and the CaribbeanMBSs
Middle East and North AfricaOECD
Organization for Economic Cooperation and DevelopmentOMB
Office of Management and Budget (U.S.)PB
personal income taxRAS
relative asset swapSCE
employee’s social contributionsSCR
employer’s social contributionsSGP
Stability and Growth PactSMP
Securities Market ProgramSSA
social security contributionsTARP
Troubled Asset Relief ProgramVAT
Volatility Index (Chicago Board Options Exchange)WEO
World Economic OutlookWH
Afghanistan, Rep. ofALB
Antigua and BarbudaARG
Bosnia and HerzegovinaBWA
Central African RepublicTCD
Congo, Democratic Republic ofCOG
Congo, Republic ofCRI
Hong Kong SARHUN
Iran, I.R. ofIRQ
Korea, Republic ofKWT
Macedonia, former Yugoslav Republic ofMDG
Papua New GuineaPRY
St. Kitts and NevisLCA
St. Vincent and the GrenadinesWSM
São Tomé and PríncipeSAU
Syrian Arab RepublicTWN
Taiwan, Province of ChinaTJK
Trinidad and TobagoTUN
United Arab EmiratesGBR
Venezuela, República Bolivariana deVNM
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2011, “Raising the Consumption Tax in Japan: Why, When, and How?”IMF Staff Discussion Note 11/13 (Washington: International Monetary Fund).
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