## 2.31 GFS within fiscal analysis and policymaking

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**Canonical URL:** [2.31 GFS within fiscal analysis and policymaking](https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-231-gfs-within-fiscal-analysis-and-policymaking.pdf)

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### Summary
- Document: GFSM 2014 update — Proposed Recommendations Document: 2.31 GFS within fiscal analysis and policymaking.
- Global Consultation(s): GFSM: March 2026.
- Discussions at GFSAC Meeting(s): January 2026.
- Summary of Proposed Recommendations:
  - retain a reviewed and updated list of fiscal indicators within the GFSM, as an appendix or similar, but remove the rest of the content of GFSM 2014 (Annex to Chapter 4) and maintain it and expand upon it in materials outside of the GFSM;
  - develop expanded, stand-alone guidance (outside the GFSM) to support the use of GFS in fiscal analysis and policymaking.

### Background and Issues
- Role of GFS:
  - The GFSM provides a standardized and comprehensive framework to record public sector finances.
  - When compiled effectively, GFS can transform the government’s fiscal and debt data into strategic decision-making tools for users.
  - GFS users have consistently indicated the importance of more information being provided on using the GFS framework for fiscal analysis and policymaking. (Paragraph 1)
- Issue A: Existing guidance in GFSM 2014
  - The Annex of Chapter 4 of the GFSM 2014 provides an overview of Using GFS for Fiscal Analysis. (Paragraph 2)
  - The Annex includes:
    - context of using GFS within fiscal analysis;
    - what fiscal indicators are available from the GFS framework;
    - what fiscal indicators require integration between GFS and additional data.
  - The Annex focuses on how particular GFS aggregates and balancing items can be used or combined to calculate indicators, with limited guidance on how these fiscal indicators can improve public financial management or support fiscal analysis in practice.
  - Some indicators are outdated (example: “policy lending”), and other widely used indicators may be missing. (Paragraph 2)
- Issue B: Integration of GFS and Public Financial Management
  - GFS supports all core Public Financial Management (PFM) functions — including budget preparation, execution, accounting, reporting, forecasting, and fiscal risk management. (Paragraph 3)
  - By delivering a consistent, comprehensive system for classifying, recording, and reporting government operations, GFS can strengthen policy analysis, decision-making, and fiscal transparency.
  - Harmonized with national accounts and focused on economically meaningful indicators, GFS serves as a natural backbone for PFM reforms across the budget cycle, ensuring comparability, credibility, and accountability in public sector finances. (Paragraph 3)
- Issue C: GFS links with international fiscal analysis and surveillance
  - GFS is designed for fiscal analysis, offering a comprehensive and standardized method for collecting, compiling, and presenting fiscal and debt data. (Paragraph 4)
  - Within the IMF’s Fiscal Affairs Department, GFS provides a foundation for evaluating government operations and fiscal positions and assists in developing analytical tools and policy recommendations. (Paragraph 4)
  - GFS supports IMF fiscal analysis and surveillance by providing a standardized basis for:
    - (i) fiscal transparency assessments under the Fiscal Transparency Code;
    - (ii) identification and quantification of fiscal risks through the Fiscal Risk Assessment Tool and related modules (including SOE, guarantee/loan, and public-private partnership tools);
    - (iii) cross-country monitoring and country surveillance (Fiscal Monitor and Article IV work);
    - (iv) data adequacy and quality reviews (including using IMF’s Data Quality Assessment Framework for GFS and public sector debt statistics) that diagnose gaps and guide improvements in fiscal and debt statistics. (Paragraph 5)
- Issue D: GFS Supplementary Information to support fiscal analysis
  - The utility of GFS is significantly enhanced by supplementary information that often resides outside the core GFS accounts. (Paragraph 6)
  - Items such as provisions, contingent liabilities, guarantees, and tax relief measures are critical for a holistic understanding of fiscal risks, debt sustainability and the true financial position of the public sector.
  - Country experiences show that integrating these items into fiscal analysis — whether through GFS-aligned reforms, dedicated risk management functions, or supplementary statements — leads to more credible fiscal forecasting, proactive risk management, and improved policy coherence. (Paragraph 6)

### Proposed Recommendations
- To address Issue A (Existing guidance in GFSM 2014): (Paragraph 7)
  - Retain a reviewed and updated list of fiscal indicators within the next GFSM, as an appendix or similar.
  - Move other content of the GFSM 2014 (Annex of Chapter 4) to materials outside the GFSM and expand upon it as recommended under Issues B, C and D.
- To address Issues B, C and D (Integration, links with surveillance, supplementary information): (Paragraph 8)
  - Provide expanded guidance to support the use of GFS in fiscal analysis and policymaking, covering issues discussed in the proposed recommendation document and discussion note.
  - Develop and maintain this guidance outside of the GFSM.

### Rationale for Proposed Recommendations
- Keeping the fiscal indicators within the GFSM, as an appendix or similar, provides important high-level information to GFS users. (Paragraph 9)
- Placing other materials on fiscal analysis and policymaking outside of the GFSM allows for more frequent and responsive updates to analytical needs. (Paragraph 9)
- Providing expanded guidance on the application of the GFS framework for fiscal analysis and policymaking enhances the practical use of GFS by offering clear guidance and country examples. (Paragraph 9)

### Proposed Text for GFSM Update
- No text is proposed at this stage. (Paragraph 10)
- The updated list of fiscal indicators, which will be maintained as an appendix or similar, should be developed in collaboration with users of fiscal data. (Paragraph 10)

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_Source: https://www.imf.org/-/media/files/data/statistics/gfsm/global-consultations/proposed-recommendations-gfsm-2014-update-231-gfs-within-fiscal-analysis-and-policymaking.pdf_