Public Financial Management (PFMx) Module 12 PFM and Fiscal Transparency This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Fiscal Affairs Department (FAD) courses. Any reuse requires the permission of the IMF and FAD.
Citizens Budget
Why Transparency is important Sources of Public Debt between 2007 and 2010 (Percent of 2010 GDP) Total unanticipated increase in debt = 26.4% of GDP Source: IMF estimates using WEO data.
Defining Fiscal Transparency Information Availability Access Quality Fiscal operations PFM processes
Budget Transparency and Fiscal Transparency Budget Transparency Revenue Expenditure Debt / Cash
Lack of Transparency Publishing only partial information Publishing information that is difficult to understand Exploiting weaknesses in accounting rules
Lack of Transparency: Partial Information Publishing only partial information No information on off-budget government entities Only aggregated data
Lack of Transparency: Information that is difficult to understand Publishing only partial information Publishing information that is difficult to understand No information on off-budget government entities Only aggregated data Without summary tables or explanatory text Not posted on the internet; not easy to buy or borrow
Lack of Transparency: Weaknesses in Accounting Rules Publishing only partial information Publishing information that is difficult to understand Exploiting weaknesses in accounting rules No information on off-budget government entities Only aggregated data Without summary tables or explanatory text Not posted on the internet; not easy to buy or borrow Selling assets, and treating the proceeds as revenue
Lack of Transparency Publishing only partial information Publishing information that is difficult to understand Exploiting weaknesses in accounting rules No information on off-budget government entities Only aggregated data Without summary tables or explanatory text Not posted on the internet; not easy to buy or borrow Selling assets, and treating the proceeds as revenue
Introduction to Fiscal Transparency Fiscal Transparency Internal External
Dimensions of Fiscal Transparency Fiscal Transparency Internal Cabinet members; policy makers Shared/accurate information; internal control; discipline; better policy design
Dimensions of Fiscal Transparency Fiscal Transparency Internal External Cabinet members, policy makers Legislature; Citizens Markets; IFIs Shared/accurate information, internal control, discipline, better policy design Accountability; surveillance; external control; participation
Fiscal Transparency
Fiscal Transparency
Fiscal Transparency
Destabilization Allocative Distortions Exacerbated Inequities Longer lag effects, costlier remedies
International Evidence Fiscal Transparency and Government Debt Average Debt/GDP Ratio, 1997-2007 200 150 100 50 High Income Middle Income Low Income 0 1 2 3 4 5 Source: IMF estimates using WEO data. IMF Index of Fiscal Transparency
Transparency Standards
Transparency Initiatives
Globally recognized index of budget transparency Developed by the International Budget Partnership, working with Civil Society Organizations
Open Budget Index 2015 Source: International Budget Partnership.
Open Budget Survey 2015 : Findings Source: Open Budget Survey 2015, International Budget Partnership.
Fiscal Transparency Code, 2014
Fiscal Transparency Code, 2014
Fiscal Transparency Code, 2014
Fiscal Transparency Code, 2014
PEFA Framework: Transparency Indicators
U.S. Department of State Fiscal Transparency Report Based on a survey sent to U.S. embassies and consulates worldwide Budget documentation: publicly available; substantially complete; reliable Transparent natural resource contracts Minimum requirements; Significant Progress or No Significant Progress
Lack of Transparency Sources of Public Debt between 2007 and 2010 (Percent of 2010 GDP) Total unanticipated increase in debt = 26.4% of GDP Source: IMF estimates using WEO data.
Global Financial Crisis: Key Transparency Problems Sources of unexpected increase in General Government Debt (Percent of GDP, 2007-2010) Source: IMF estimates using WEO data.
Transparency Recommendations: Timely information
Transparency Recommendations: Coverage
Transparency Recommendations: Comprehensive information
Transparency Recommendations: Credible Forecasts
Transparency Recommendations: Contingent Liabilities
Key Transparency Recommendations
Fiscal Transparency and the Budget Cycle Transparent Information Coverage Sources of Fiscal Risk
Fiscal Transparency Fiscal Transparency is openness about public finances. Fiscal Transparency Supported by International Standards Public Participation and Oversight Better Outcomes
Public Financial Management (PFMx) Module 12 IMF Fiscal Transparency Code This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Fiscal Affairs Department (FAD) courses. Any reuse requires the permission of the IMF and FAD.
Fiscal Transparency Code Levels of Country Practice
Differentiating Levels of Country Practice
Levels of Practice