Georgia: Technical Assistance Report—Updating the Balance Sheet and Quantifying Fiscal Risks From Climate Change

IMF Staff Country Reports, May 27, 2022

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Canonical URL: Georgia: Technical Assistance Report—Updating the Balance Sheet and Quantifying Fiscal Risks From Climate Change

The Georgian Ministry of Finance (MoF) has advanced its analysis and reporting of fiscal risks; its annual Fiscal Risk Statement (FRS) is described as the leading example in the region.
The December 2020 FRS included for the first time a qualitative discussion on the fiscal risks from climate change.
The government committed to including quantitative estimates in the 2022 version of the FRS.
This report provides tools and analytical approaches to support the inclusion of quantitative climate-related fiscal risk estimates and updates the public sector balance (PSBS) sheet to identify the impact of the pandemic.

The report supplies tools and analytical approaches for quantifying fiscal risks from climate change to be incorporated into the FRS.
It updates the public sector balance sheet (PSBS) to identify the fiscal impact of the pandemic.
The MoF’s FRS already contains detailed discussions of risks from state-owned enterprises (SOEs) and the balance sheet; climate-related fiscal risk is being added and strengthened.

Strengthen the December 2020 FRS’s qualitative discussion by incorporating quantitative estimates in the 2022 FRS, using the tools and approaches in this report.
Use the updated PSBS to identify and quantify pandemic-related impacts on public sector liabilities and assets, as part of a broader fiscal risk management framework.
Integrate climate scenario analysis and fiscal risk quantification into annual fiscal risk reporting to inform public financial management and contingency planning.

Climate change; Environment; Financial statements; Fiscal risks; Natural disasters; Public financial management (PFM); Monetary policy; International organization.
Keywords include: C. Intertemporal balance sheet effect, Climate change, climate scenario, EU delegation, Financial statements, Fiscal risks, Global, IMF resident representative, IMF's Fiscal Affairs Department, Natural disasters.

Source: Georgia: Technical Assistance Report—Updating the Balance Sheet and Quantifying Fiscal Risks From Climate Change (IMF), May 27, 2022.