Managing Fiscal Risks from State-Owned Enterprises
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Summary:
Ensuring that state-owned enterprises (SOEs) are efficient and managed prudently is important for economic and social reasons. It is also crucial to contain fiscal risks and reduce the burden on taxpayers from recurrent and large bailouts. Governments need to develop stronger capacity to monitor and mitigate the risks from SOEs. We present a risk tool to benchmark the performance of SOEs relative to their peers and assess their vulnerabilities, including through stress tests. A strategy to mitigate risks requires the right incentives for managers to perform and for government agencies to conduct effective oversight. Incorporating SOEs in overall fiscal targets would promote greater fiscal discipline and transparency.
Series:
Working Paper No. 2020/213
Subject:
Budget planning and preparation Contingent liabilities Economic sectors Economic sectors Financial crises Fiscal risks Public enterprises Public financial management (PFM) Public sector
Frequency:
regular
English
Publication Date:
September 25, 2020
ISBN/ISSN:
9781513557502/1018-5941
Stock No:
WPIEA2020213
Pages:
43
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