- Martine Guerguil, and Michael Keen
- Published Date:
- April 2014
cyclically adjusted primary balance
Central and Eastern Europe
Commonwealth of Independent States (World Economic Outlook classification)
defined-benefit pension funds
gross domestic product
Government Finance Statistics
Government Finance Statistics Manual
Government Finance Statistics Yearbook
Latin America and the Caribbean
Middle East and North Africa
Middle East and North Africa and Pakistan
Organisation for Economic Co-operation and Development
public financial management
System of National Accounts
vertical fiscal imbalance
United Arab Emirates
Antigua and Barbuda
Bosnia and Herzegovina
Central African Republic
Congo, Democratic Republic of the
Congo, Republic of
Micronesia, Federated States of
Hong Kong SAR
Saint Kitts and Nevis
Macedonia, former Yugoslav Republic of
Papua New Guinea
São Tomé and Príncipe
Trinidad and Tobago
Taiwan Province of China
Saint Vincent and the Grenadines
Budgetary measures that dampen fluctuation in real GDP, automatically triggered by the tax code and by spending rules.
Obligations of a government, the timing and magnitude of which depend on the occurrence of some uncertain future event outside the government’s control. Can be explicit (obligations based on contracts, laws, or clear policy commitments) or implicit (political or moral obligations) and sometime arise from expectations that government will intervene in the event of a crisis or a disaster, or when the opportunity cost of not intervening is considered to be unacceptable.
Cyclical component of the overall fiscal balance, computed as the difference between cyclical revenues and cyclical expenditures. 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.
Difference between the overall balance and the automatic stabilizers; equivalently, an estimate of the fiscal balance that would apply under current policies if output were equal to potential.
Revenue and expenditure adjusted for temporary effects associated with the deviation of actual from potential output (i.e., net of automatic stabilizers).
Cyclically adjusted balance excluding net interest payments.
A revenue-neutral shift from employers’ social contributions toward value-added tax.
Elasticity of expenditure with respect to the output gap.
The ratio of a change in output to an exogenous and temporary change in the fiscal deficit with respect to their respective baselines.
Discretionary fiscal policy actions (including revenue reductions and spending increases) adopted in response to a financial crisis.
All government units and all nonmarket, nonprofit institutions that are controlled and mainly financed by government units comprising the central, state, and local governments; includes social security funds, and does not include public corporations or quasi-corporations.
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 special drawing rights, currency, and deposits; debt securities; loans; insurance, pension, and standardized guarantee schemes; and other accounts payable. (See the 2001 edition of the IMF’s Government Finance Statistics Manual and Public Sector Debt Statistics Manual). The term “public debt” is used in the Fiscal 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.)
Overall new borrowing requirement plus debt maturing during the year.
Effective interest rate (r, defined as the ratio of interest payments to the debt of the preceding period) minus nominal GDP growth (g), divided by 1 plus nominal GDP growth: (r − g)/(1 + g).
Gross debt minus financial assets corresponding to debt instruments. These financial assets are: monetary gold and SDRs, currency and deposits, debt securities, loans, insurance, pension, and standardized guarantee schemes, and other accounts receivable. In some countries the reported net debt can deviate from this definition on the basis of available information and national fiscal accounting practices.
General government plus nonfinancial public corporations.
Deviation of actual from potential GDP, in percent of potential GDP.
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, which is defined as total revenue and grants minus total expenditure and net lending.
Transactions in financial assets that are deemed to be for public policy purposes but are not part of the overall balance.
Overall balance excluding net interest payment (interest expenditure minus interest revenue).
See Gross debt.
The general government sector plus government-controlled entities, known as public corporations, whose primary activity is to engage in commercial activities.
Elasticity of revenue with respect to the output gap.
Change in the gross debt explained by factors other than the overall fiscal balance (for example, valuation changes).
Difference between the cyclically adjusted balance and other nonrecurrent effects that go beyond the cycle, such as one-off operations and other factors whose cyclical fluctuations do not coincide with the output cycle (for instance, asset and commodity prices and output composition effects).