Budget Institutions in G-20 Countries - Country Evaluations
Policy Papers, April 7, 2014
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- Budget Institutions in G-20 Countries - Country Evaluations
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Bibliographic details
- Published: April 7, 2014
- Series: Policy Papers
Overview and publication
- Publication title: Budget Institutions in G-20 Countries - Country Evaluations
- Publication date shown on page: April 7, 2014
- Summary excerpt: The central government publishes comprehensive financial statements, which include the social security funds and balance sheets with all financial assets and liabilities. Audited financial statements are published more than nine months after the end of the fiscal year.
Key reforms introduced by the 2004 Fiscal Responsibility Law (LRF)
- Establishment of a macro-fiscal framework.
- Introduction of fiscal rules.
- Creation of a medium-term budget framework (MTBF).
- Implementation of a system of quarterly budget execution reports.
- Creation of the Federal Council on Fiscal Responsibility (FCFR) tasked to enforce provisions of the LRF.
- Reforms apply to the central and most of the first layer of sub-national governments.
Implementation strengths and institutional outcomes
- The law has significantly increased the capacity to coordinate fiscal policies across levels of government and individual jurisdictions.
- The FCFR comprises representatives of the central government, the city of Buenos Aires, and 21 of the 23 provincial governments.
- Budget execution control and reporting have been strengthened through a series of upgrades to the Integrated Financial Management Information System (SIDIF), which began operations in 1993.
Identified problems and limitations
- The out-years of the MTBF are indicative only.
- Several LRF provisions have been suspended or relaxed since 2009.
- Some provinces are not complying with their obligations under the law.
- Membership in the FCFR is not mandatory and adherence to the LRF is voluntary.
- Differences between macroeconomic and fiscal forecasts and outturns are not analyzed.
- Limited information is presented on fiscal risks.
- Audited financial statements are published more than nine months after the end of the fiscal year.
Subjects and thematic tags (as listed on the page)
- Budgeting; Budgets; Cross country analysis; Data quality assessment framework; Financial management; Fiscal policy; Fiscal risk; Group of Twenty; Public finance; Risk management
Source: Budget Institutions in G-20 Countries - Country Evaluations (April 7, 2014).
Content in this bundle
- Budget Institutions in G-20 Countries: Country Evaluations; IMF Policy Paper, April 7, 2014