- 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
2011, “Historical Patterns and Dynamics of Public Debt: Evidence from a New Database,”IMF Economic Review, forthcoming.
2008, “Do Tax Structures Affect Aggregate Economic Growth? Empirical Evidence from a Panel of OECD countries,”OECD Working Paper 643 (Paris: Organization for Economic Cooperation and Development).
2011, “Indicators of Fiscal Vulnerability and Fiscal Stress,”IMF Working Paper 11/94 (Washington: International Monetary Fund).
2011, “The Budgetary Impact of Large Declines in Oil Prices”forthcoming; (Washington: International Monetary Fund).
Bank of Portugal,2011, “The Impact of a Tax Change Aimed at Increasing the External Competitiveness of the Portuguese Economy,”Economic Bulletin,Vol. 17,No. 1, pp. 39-42.
2010, “A Status Update on Exit Strategies,”IMF Working Paper 10/272 (Washington: International Monetary Fund).
2010, “Sovereign Spreads: Global Risk Aversion, Contagion or Fundamentals?”IMF Working Paper 10/120 (Washington: International Monetary Fund).
1998, “Macroeconomic Policy, Wage Setting, and Employment—What Difference Does the EMU Make?”Oxford Review of Economic Policy,Vol. 14, No. 3, pp. 125-51.
2010, “Budget Institutions and Fiscal Performance in Low-Income Countries,”IMF Working Paper 10/80 (Washington: International Monetary Fund).
2000, Fiscal and Macroeconomic Impact of Privatization (Washington: International Monetary Fund).
2011, “Tax Reform and Fiscal Policy” (unpublished; Washington: International Monetary Fund).
2002, “Value-Added Taxes and International Trade: The Evidence” (unpublished; University of Michigan).
2004, “Are Contributions to Public Pension Programs a Tax on Employment?”Economic Policy,Vol. 19, No. 39, pp. 267-311.
European Central Bank,2011, “Fiscal Devaluation in Portugal: Results from Model-Based Simulations and Institutional Aspects” (unpublished; Frankfurt am Main: European Central Bank, Research Department).
European Commission, Directorate General for Economic and Financial Affairs,2003, “Public Finances in EMU 2003” (Brussels).
1990, “International Trade Effects of Value Added Taxation,”in Taxation in the Global Economy,ed. byA.Razin and J.Slemrod (ed) (Chicago: University of Chicago Press).
France, Ministry of Economy, Finance, and Industry,2007, “Etude sur la possibilité d’affecter une partie de la TVA au financement de la protection social en contrapartie d’une baisse des charges sociales pesant sur le travail,”Note d’étape (Paris).
2011, “Adjustment to External Imbalances within the EMU, The Case of Portugal” (unpublished; University of Lisbon).
2011, “Efficiency-Adjusted Public Capital and Growth,”IMF Working Paper (forthcoming; Washington: International Monetary Fund).
2005, “Fiscal Transparency and Economic Outcomes,”IMF Working Paper 05/225 (Washington: International Monetary Fund).
1999, “Threshold Effects in Non-Dynamic Panels: Estimation, Testing, and Inference,”Journal of Econometrics,Vol. 93, No. 2, pp. 345-68.
2011, “QUEST Model Simulations of a Budgetary Neutral Tax Shift from Social Security Contributions to Consumption Taxes in Portugal” (unpublished; Brussels: European Commission).
International Monetary Fund (IMF),1986, Government Finance Statistics Manual (Washington: International Monetary Fund).
International Monetary Fund (IMF),2001, Government Finance Statistics Manual (Washington: International Monetary Fund).
International Monetary Fund (IMF),2007, World Economic Outlook,April (Washington: International Monetary Fund).
International Monetary Fund (IMF),2010a, “Fiscal Rules—Anchoring Expectations for Sustainable Public Finances,”IMF Staff Paper (Washington: International Monetary Fund).
International Monetary Fund (IMF),2010b, “From Stimulus to Consolidation: Revenue and Expenditure Policies in Advanced and Emerging Economies,”IMF Staff Paper 10/64 (Washington: International Monetary Fund).
International Monetary Fund (IMF),2010c, “Macro-Fiscal Implications of Health Care Reforms in Advanced and Emerging Economies,”IMF Policy Paper (Washington: International Monetary Fund). Available via the Internet: www.imf.org/external/np/pp/eng/2010/122810.pdf
International Monetary Fund (IMF),2010d, Fiscal Monitor—Fiscal Exit: From Strategy to Implementation,November (Washington: International Monetary Fund).
International Monetary Fund (IMF),2010e, World Economic Outlook,October (Washington: International Monetary Fund).
International Monetary Fund (IMF),2011a, Fiscal Monitor—Shifting Gears: Tackling Challenges on the Road to Fiscal Adjustment,April (Washington: International Monetary Fund).
International Monetary Fund (IMF),2011b, World Economic Outlook,September (Washington: International Monetary Fund).
International Monetary Fund (IMF),2011c, Global Financial Stability Report,September (Washington: International Monetary Fund).
International Monetary Fund (IMF),2011d, “Revenue Mobilization in Developing Countries,”Fiscal Affairs Department (Washington: International Monetary Fund).
International Monetary Fund (IMF),forthcoming, Public Sector Debt Statistics—Guide for Compilers and Users (Washington: International Monetary Fund). Available via the Internet: www.tffs.org/PSDStoc.htm
2011, “Global Risk Aversion and Domestic Bond Yields in Emerging Markets,”IMF Working Paper (forthcoming; Washington: International Monetary Fund).
2011, “Raising the Consumption Tax in Japan: Why, When, and How?”IMF Staff Discussion Note 11/13 (Washington: International Monetary Fund).
2010, “Public Debt and Growth,”IMF Working Paper 10/174 (Washington: International Monetary Fund).
2010, “Resolution of Banking Crises: The Good, the Bad, and the Ugly,”IMF Working Paper 10/146 (Washington: International Monetary Fund).
2010, “Privatization Trends and Major Deals in 2010,”in The PB Report 2010 (Privatization Barometer), pp. 6–22.
Organization for Economic Cooperation and Development (OECD),2011, Central Government Debt Statistical Yearbook 2000—10 (Paris).
2011, “The Austerity Myth—Gain without Pain?” (unpublished; Milan, Italy: Universita’ Bocconi).
2010, “Growth in a Time of Debt,”American Economic Review Papers and Proceedings,Vol. 100, No. 2, pp. 573–78.
1995, “Making a Market: Mass Privatization in the Czech and Slovak Republics,”World Development,Vol. 23, No. 7, pp. 1143–56.
United States, Federal Housing Finance Agency (FHFA),2010, “Projections of the Enterprises’ Financial Performance,”News Release, October21 (Washington).
2006, “What Do Deficits Tell Us about Debt? Empirical Evidence on Creative Accounting with Fiscal Rules in the EU,”Journal of Banking and Finance,Vol. 30, No. 12, pp. 3259–79.