Assessing Fiscal Sustainability in Theory and Practice
IMF Working Papers, April 1, 2000
Source details
- Canonical URL
- Assessing Fiscal Sustainability in Theory and Practice
Other formats
Bibliographic details
- Authors: Nigel A Chalk, Richard Hemming
- Published: April 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451850352.001
Overview and main purpose
- Main purpose: provide an overview of approaches to assessing fiscal sustainability.
- Focus areas summarized:
- The present value budget constraint as the benchmark against which solvency is determined.
- Tests of sustainability, including sustainability indicators.
- Sustainability and uncertainty.
- How fiscal sustainability has been assessed in different types of IMF work.
- The link between fiscal and external sustainability.
Analytical background
- Present value budget constraint:
- Identified as the benchmark for determining solvency.
- Key technical concepts emphasized:
- Present value, present value budget constraint, sustainability calculation.
- Debt concepts: debt ratio, debt stock, net debt picture, pension debt, debt target.
Tests of sustainability and indicators
- Tests and measures covered:
- Tests of sustainability (methodological approaches).
- Sustainability indicators (tools to quantify sustainability risks).
- Related fiscal metrics and ratios highlighted:
- Government deficits and debt, tax ratio, fiscal stance.
Uncertainty and scenario considerations
- The paper addresses:
- Sustainability and uncertainty (how uncertainty affects assessments).
- Implicit need for scenario analysis and sensitivity testing when applying sustainability tests and indicators.
Assessment in IMF work
- Coverage of applied practice:
- Examination of the way fiscal sustainability has been assessed in different types of IMF work (institutional application and practice).
Link between fiscal and external sustainability
- The paper discusses:
- The relationship and interactions between fiscal sustainability and external sustainability.
Metadata and publication notes
- Series and identifiers mentioned in the source:
- Working Paper No. 2000/081
- Pages: 27
- DOI: https://doi.org/10.5089/9781451850352.001
- ISBN: 9781451850352
- ISSN: 1018-5941
Source: Nigel A Chalk and Richard Hemming, "Assessing Fiscal Sustainability in Theory and Practice", IMF Working Papers 2000, 081 (2000), accessed 9/8/2026, https://doi.org/10.5089/9781451850352.001
Content in this bundle
- Assessing Fiscal Sustainability in Theory and Practice - WP/00/81