## Assessing Fiscal Sustainability in Theory and Practice

_IMF Working Papers, April 1, 2000_

## Source details

**Canonical URL:** [Assessing Fiscal Sustainability in Theory and Practice](https://www.imf.org/en/publications/wp/issues/2016/12/30/assessing-fiscal-sustainability-in-theory-and-practice-3561)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/assessing-fiscal-sustainability-in-theory-and-practice-3561/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/assessing-fiscal-sustainability-in-theory-and-practice-3561/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/assessing-fiscal-sustainability-in-theory-and-practice-3561/bundle-manifest.json)

## Bibliographic details
- Authors: Nigel A Chalk, Richard Hemming
- Published: April 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451850352.001

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### 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*

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## Content in this bundle

- **Assessing Fiscal Sustainability in Theory and Practice - WP/00/81**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/assessing-fiscal-sustainability-in-theory-and-practice-3561_