Press Release: IMF Launches Revised Fiscal Transparency Code and Manual

IMF News, May 15, 2007

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Canonical URL: Press Release: IMF Launches Revised Fiscal Transparency Code and Manual

Press Release No. 07/95
Date of press release: May 15, 2007
The Executive Board of the International Monetary Fund (IMF) approved on May 8, 2007 the revised Code of Good Practices on Fiscal Transparency.
The original Code was initially launched in 1998 and has underpinned assessments of fiscal transparency in 86 countries under the Standards and Codes initiative.

Fiscal transparency promotes:
- better-informed public debate about the design and results of fiscal policy,
- greater government accountability for the implementation of fiscal policy,
- strengthened credibility and public understanding of economic policies and choices.
These elements are described as crucial for securing economic stability and high-quality growth in an increasingly globalized economic environment.

The revised Code retains the original four pillars of fiscal transparency:
- clarity of roles and responsibilities;
- open budget processes;
- public availability of information;
- assurances of integrity.
The revision introduces nine new specific `good practices' and broadens the coverage of others.
Issues covered by the new and extended practices include:
- contractual arrangements with private companies;
- publication of a `citizen's guide' to the budget;
- consultation periods for the budget and for proposed changes to laws and regulations;
- periodic reports on long term public finances;
- openness in the sale and purchase of government assets.
The revised Code is said to distinguish key issues and priorities more clearly and to include some emerging issues in more detail.

A broad public consultation process was conducted to finalize the revised Code.
Feedback on the initial draft posted on the Fund's website and responses to a circulated questionnaire resulted in:
- the addition of the `citizen's guide' to the budget,
- more explicit wording on many specific practices.
Participants in the consultation exercise included:
- country authorities,
- civil society organizations,
- international institutions,
- academia,
- the private sector.

A major aim of the revision is to fully integrate resource revenue transparency issues, drawing on experience from the 2005 Guide on Resource Revenue Transparency.
The updated Guide identifies links to the Extractive Industries Transparency Initiative (EITI).
Extensive revisions have been made to the Manual on Fiscal Transparency, which provides detailed guidance on good fiscal transparency practices.
The Manual contains numerous examples of good and best practices drawn from real-world experience across a range of developing countries, emerging markets, and advanced economies.

Press Release: IMF Launches Revised Fiscal Transparency Code and Manual, May 15, 2007