## Fiscal Monitor, October 2018: Managing Public Wealth

_Fiscal Monitor, October 10, 2018_

## Source details

**Canonical URL:** [Fiscal Monitor, October 2018: Managing Public Wealth](https://www.imf.org/en/publications/fm/issues/2019/09/27/fiscal-monitor-october-2018-managing-public-wealth-46080)

## Other formats

- [Markdown version](/en/publications/fm/issues/2019/09/27/fiscal-monitor-october-2018-managing-public-wealth-46080/index.md)
- [Structured JSON version](/en/publications/fm/issues/2019/09/27/fiscal-monitor-october-2018-managing-public-wealth-46080/index.json)
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## Bibliographic details
- Published: October 10, 2018
- Series: Fiscal Monitor
- DOI: https://doi.org/10.5089/9781484367612.089

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### Overview: public sector balance sheets and transparency
- Public sector balance sheets bring together all accumulated assets and liabilities that the government controls, including public corporations, natural resources, and pension liabilities.
- They provide a broader fiscal picture beyond debt and deficits by accounting for the entirety of what the state owns and owes.
- Most governments do not provide such transparency, thereby avoiding the additional scrutiny it brings.
- Better balance sheet management enables countries to increase revenues, reduce risks, and improve fiscal policymaking.
- There is some empirical evidence that financial markets are increasingly paying attention to the entire government balance sheet and that strong balance sheets enhance economic resilience.

### New database and coverage
- The issue presents a new database with comprehensive estimates of public sector assets and liabilities for a sample of 31 countries.
- The sample covers 61 percent of the global economy.
- The database provides tools to analyze and manage public wealth.

### Key quantitative findings
- Assets are worth US$101 trillion or 219 percent of GDP in the sample.
- Public corporation assets account for 120 percent of GDP in the sample.
- Natural resources average 110 percent of GDP among the large natural-resource-producing countries.
- General government public debt comprises 94 percent of GDP for these countries.
- Total public sector liabilities equal 198 percent of GDP, which includes 46 percent of GDP in already accrued pension liabilities.

### Fiscal implications and potential gains
- Recognizing public assets does not negate vulnerabilities associated with the standard measure of general government public debt.
- Once governments understand the size and nature of public assets, they can start managing them more effectively.
- Revenue gains from nonfinancial public corporations and government financial assets alone could be as high as 3 percent of GDP a year, equivalent to annual corporate tax collections across advanced economies.
- Considerable additional gains could be realized from government nonfinancial assets.
- Public assets matter for financial reasons, for improving service delivery, and for preventing misuse of resources that often results from a lack of transparency.

*International Monetary Fund. Fiscal Monitor, October 2018: Managing Public Wealth*

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_Source: https://www.imf.org/en/publications/fm/issues/2019/09/27/fiscal-monitor-october-2018-managing-public-wealth-46080_