Fiscal Transparency Initiative: Integration of Natural Resource Management Issues

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Canonical URL: Fiscal Transparency Initiative: Integration of Natural Resource Management Issues

Publication date: January 29, 2019
Purpose: Integrates a new fourth pillar (Pillar IV) on natural resource revenue management into the IMF Fiscal Transparency Code (FTC).
Subject: Fiscal transparency, Natural resource taxation

Pillar IV is incorporated into a unified four-pillar FTC framework that complements Pillars I-III.
Pillar IV addresses resource-rich country issues across the entire resource revenue management chain:
- ownership and allocation of resource rights
- resource revenue mobilization
- budgeting and utilization of resource revenues
Pillars I-III (published in 2014) focus on:
- fiscal reporting
- fiscal forecasting and budgeting
- fiscal risk analysis and management

Pillar IV aims to reflect both:
- established transparency practices in the extractive industries
- emerging norms such as:
- the publication of resource payments and contracts
- the disclosure of beneficial owners of resource rights

Pillar IV reflects lessons learned from pilot fiscal transparency evaluations in:
- Peru
- Tanzania
- United Kingdom
- Mexico
- Trinidad and Tobago
It incorporates extensive stakeholder feedback on earlier drafts of Pillar IV released for public consultation in 2015 and 2016

The four-pillar FTC will underpin Fiscal Transparency Evaluations for resource-rich countries.
Pillar IV will inform a second volume of the Fiscal Transparency Handbook, forming an update to the 2007 Guide on Resource Revenue Transparency.

International Monetary Fund — Fiscal Transparency Initiative: Integration of Natural Resource Management Issues (January 29, 2019).