## Fiscal Frameworks (FF) — Course Structure and Standard Syllabus

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**Canonical URL:** [Fiscal Frameworks (FF) — Course Structure and Standard Syllabus](https://www.imf.org/-/media/files/icd/ff.pdf)

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### Course objectives and outcomes
- Objective: Introduce essential concepts to measure and analyze fiscal policy consistency and effectiveness, then study fiscal frameworks as best practices to foster fiscal discipline, including fiscal rules and fiscal councils to promote transparency and accountability.
- Rationale: Discipline in fiscal policy is essential to achieve macroeconomic stability and minimize the risk of unsustainable dynamics that hamper long-term adequate and inclusive growth.
- Concluding activity: The course concludes with thematic presentations by participants.
- Expected participant competencies upon completion:
  - Describe recent fiscal policy methodologies and tools.
  - Adopt a critical approach to assess data quality for fiscal policy.
  - Identify appropriate fiscal rules for countries' specific problems.
  - Use an in-year monitoring tool for fiscal performance.
  - Contribute to building a medium-term budget (for consolidation or stimulus) while limiting recession risks and respecting sustainability.

### Course structure and timing
- Briefing and quiz: 1.5 hours (Administrative briefing, Opening session, Initial Test)
- Unit 1: 4.5 hours L – 1 (The importance of fiscal frameworks)
- Day 2:
  - Unit 2: 1.5 hours L – 2 (The role of fiscal institutions: general overview)
  - Unit 3: 3 hours L – 3 (Coverage of fiscal statistics)
  - W – 1 Workshop: Measuring debt (main concepts; measures of sovereign debt; manipulation of fiscal statistics)
  - Unit 4: 3 hours L – 4 (Executing a fiscal plan: critical elements)
- Day 3:
  - W–2 Workshop: In-year expenditure control tool (analysis driven by historical comparison; automatic alarm signals)
  - Unit 5: 3 hours L–5 (The deficit and procyclicality biases)
  - W–3 Workshop: Cyclically adjusted budget: Kyrgyz Republic (cyclically adjusted budget; fiscal stance; fiscal stimulus)
  - Unit 6: 4.5 hours L – 6 (Fiscal rules: Design)
- Day 4:
  - W – 4 Workshop: Fiscal rules (structural balance and escape clauses; debt brakes; automatic correction mechanisms)
  - Unit 7: 1.5 hours L–7 (Fiscal rules: The role of Fiscal Councils)
  - Unit 8: 1.5 hours L–8 (Invited lecture on regional fiscal topics of interest)
- Day 5:
  - Unit 9: 1.5 hours L – 9 (Managing fiscal risks: Contingent liabilities)
  - Unit 10: 1.5 hours L – 10 (Monetary and fiscal policy interaction)
  - Unit 11: 3 hours O – 2 (Participants’ debate: review material; prepare talking points; debate pro and cons on three issues)
- Day 6:
  - Unit 12: 3 hours O – 3 (Q & A session)
  - Counselors: analysis of risks; disclosure; examples of risk mitigation strategies
  - Unit 13: 1.5 hours L – 11 (Fiscal transparency; IMF Code on Fiscal transparency; international experience)
  - Unit 14: 3 hours L – 12 (Fiscal sustainability and Debt Management)
- Day 8:
  - W – 5 Workshop: Debt Management (Mexico success story; institutional build up; external favorable conditions)
  - Unit 15: 4.5 hours L – 13 (How to Design a Fiscal Policy Package)
  - W – 6 Workshop Fiscal Policy Package (Case study: Kyrgyzstan; historical background and assess budget proposal; form an alternative plan)
- Day 2 (note: continuation listed as Day 2 in source):
  - Unit 16: 4.5 hours L – 14 (Medium-term budget frameworks: objectives; pre-requisites; forecasting)
  - L – 14 (ctd) Medium-term budget frameworks (key features; implementation)
  - W – 7 Workshop: Medium-term budget frameworks (agree on the needed budget adjustment; construct an aggregate expenditure ceiling; identify disaggregated constraints for line ministers)
  - Unit 17: 1.5 hours L – 15 (Fiscal frameworks in resource rich countries)
- Day 9:
  - Presentations and quiz (6 hours) O – 3 (Participants’ presentations: Applied topics from the course. Preparation (continued). Final quiz)
- Day 10:
  - Presentations and closing (3.5 hours) O – 3 (Participants’ presentations. Course evaluation, closing session, and presentation of certificates)

### Major thematic content and technical topics
- Role of government; fiscal policy objectives: macro stability, allocation of resources for growth, and redistribution.
- Institutions for fiscal policy effectiveness; fiscal responsibility and transparency.
- Fiscal statistics: definition of public sector; debt statistics; non-debt liabilities; off-budget entities; quasi-fiscal activities; PPPs.
- Debt measurement and management: main concepts; measures of sovereign debt; links with debt management; optimal and safe debt levels; interest rates; debt intolerance across countries and over time.
- Expenditure control and cash management: expenditure controls; objectives and modalities of cash management and Treasury Single Account; links with debt management.
- In-year monitoring: in-year expenditure control tool; analysis driven by historical comparison; automatic alarm signals.
- Biases and cyclicality: causes of fiscal policy bias; risks of persistent bias; policies to address fiscal biases; cyclically adjusted budget; fiscal stance; fiscal stimulus; asymmetric fiscal multipliers.
- Fiscal rules and institutions: objectives and taxonomy of fiscal rules; numerical targets; strengths and limitations (rules versus discretion debate); fiscal responsibility frameworks; structural balance and escape clauses; debt brakes; automatic correction mechanisms.
- Fiscal councils: rationale and functions; independence; role as complement to transparency; case studies.
- Managing fiscal risks and contingent liabilities: types and sources of fiscal risks; disclosure; relevance and impact; how to minimize negative effects.
- Monetary–fiscal interaction: Central bank Independence/fiscal dominance; coordination; monetary unions and fiscal rules.
- Fiscal transparency: benefits; IMF Code on Fiscal transparency; international experience.
- Designing fiscal policy packages: sector linkages and feedbacks; stabilization and structural reforms; asymmetric fiscal multipliers.
- Medium-term budget frameworks: objectives; pre-requisites; forecasting; key features; implementation.
- Fiscal policy in resource rich countries: policy under volatility of commodity prices; trade-offs between consuming nonrenewable resource wealth and saving.

### Pedagogical methods and assessment
- Lectures labeled L – 1 through L – 15 with specified durations.
- Workshops labeled W – 1 through W – 7 focused on practical exercises and case studies (Measuring debt; In-year expenditure control; Cyclically adjusted budget; Fiscal rules; Debt Management; Fiscal Policy Package; Medium-term budget frameworks).
- Participant activities labeled O – 1 through O – 3 (Initial fiscal frameworks description and issues; Participants’ debate; Participants’ presentations).
- Assessments: initial test; quizzes; final quiz; participant presentations; course evaluation; presentation of certificates.

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_Source: https://www.imf.org/-/media/files/icd/ff.pdf_