Posted on May 29, 2014 by iMFdirect
By Holger van Eden
Most economists would agree that institutions in general are incredibly important in helping to shape countries’ overall economic and fiscal outcomes. But which institutions really matter, and to what extent, is less clear.
A team of staff at the IMF recently completed a study, along with detailed country evaluations, that explores the G-20 countries’ efforts to strengthen their budget institutions in the wake of the global financial crisis, and evaluates their impact on fiscal policy. We ask whether strong budget institutions helped these countries to cope with the substantial fiscal consolidation needs that arose after the Great Recession. The evidence suggests that these institutions have indeed been important.
Budget institutions matter
In the study we identify 12 institutions (see figure1) that are commonly viewed as important for the effectiveness of fiscal policy. To be clear, the term “institution” is used in a broad sense—it encompasses processes, procedures, systems, legal frameworks, and organizational entities which contribute to the budget process.
Filed under: Advanced Economies, Emerging Markets, Europe, Finance, Financial Crisis, Fiscal policy, International Monetary Fund, Reform | Tagged: budget institution, budget preparation, fiscal reporting, G-20 | Leave a comment »
Posted on November 1, 2012 by iMFdirect
by Carlo Cottarelli
Version in Français
Without good fiscal information, governments can’t understand the fiscal risks they face or make good budget decisions. And unless that information is made public, citizens and their legislatures can’t hold governments accountable for those decisions.
Fiscal transparency—the public availability of timely, reliable, and relevant data on the past, present, and future state of the public finances—is thus crucial to the foundation of effective fiscal management.
A new paper from the IMF on fiscal transparency, accountability, and risk considers the progress we have made in opening up the “black box” of fiscal policymaking over the past decade, the lessons of the recent crisis for current fiscal reporting standards and practices, and the steps we need to take to revitalize the global fiscal transparency effort.
Filed under: Advanced Economies, Employment, Europe, Finance, Fiscal policy, growth, IMF, Inequality, International Monetary Fund, Politics, Public debt | Tagged: balance sheets, budget, Central African Economic and Monetary Community, compliance, economic crisis, European Union, financial crisis, fiscal data, fiscal policy, fiscal reporting, fiscal transparency, government, Government Finance Statistics Manual, Greece, IMF, iMFdirect blog, International Monetary Fund, International Public Sector Accounting Standards, standards, transparency, West African Economic and Monetary Union | 4 Comments »