{
  "title": "THE IMF's ROLE — FISCAL RISK MANAGEMENT",
  "sourceUrl": "https://www.imf.org/en/topics/fiscal-policies/fiscal-risks/fiscal-risks-imf-role",
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  "summary": "Fiscal-Risks-IMF-Role THE IMF's ROLE FISCAL RISK MANAGEMENT Importance of Fiscal Risk Management Fiscal risks can have a significant impact on government finances.",
  "sections": [
    {
      "heading": "Importance of Fiscal Risk Management",
      "content": "- Fiscal risks can have a significant impact on government finances; recent experiences, including the COVID-19 pandemic and the global financial crisis, have led to large increases in government deficits and debt.\n- Fiscal risks arise from a variety of sources:\n  - macroeconomic and financial sector shocks\n  - environmental risks\n  - bailouts of state-owned enterprises and subnational governments\n  - calls on government guarantees\n  - obligations in public private partnerships\n- A government's ability to respond to fiscal risks depends on:\n  - quality of information about the sources and size of risks\n  - capacity to assess the likelihood of risks materializing\n  - strength of underlying public financial management institutions"
    },
    {
      "heading": "IMF tools, diagnostics, and guidance",
      "content": "- The IMF has developed practical tools, diagnostics, and guidance notes to help countries identify, quantify, disclose, and manage fiscal risks.\n- The IMF's Fiscal Risk Assessments and Fiscal Transparency Evaluations:\n  - help countries identify the scope and scale of fiscal risks\n  - evaluate strengths and weaknesses in fiscal risk management practices\n  - chart a course of actions to address fiscal risks\n  - The Assessment draws on Pillar III of the Fiscal Transparency Code.\n- The IMF's Fiscal Risk Toolkit provides practical tools to help countries assess and monitor fiscal risks."
    },
    {
      "heading": "Capacity development and implementation",
      "content": "- The IMF’s Fiscal Affairs Department works closely with member countries to build capacity to identify, analyze, and manage fiscal risks.\n- Capacity development supports:\n  - application of the fiscal risk toolkit\n  - strengthening institutional arrangements for monitoring and managing fiscal risks\n  - enhancing fiscal transparency by disclosing fiscal risks, including through development of comprehensive fiscal risk statements\n  - integration within broader public financial management and macro-fiscal capacity development offerings"
    },
    {
      "heading": "Fiscal risk management in numbers",
      "content": "- Over the past year the IMF's Fiscal Affairs Department and Regional Capacity Development Centers:\n  - have been engaged in close to 100 fiscal risk capacity development activities\n  - supported more than 50 member countries\n  - delivered 8 regional workshops\n- The IMF’s fiscal risk assessment tools:\n  - have been applied in around 40 countries over the past two years\n- Fiscal risk assessments have been undertaken as part of 35 Fiscal Transparency Evaluations completed since 2014"
    },
    {
      "heading": "Fiscal Transparency Evaluations (summary)",
      "content": "- IMF Fiscal Transparency Evaluations assess Fiscal Risk Analysis, Disclosure and Management Practices.\n- Average scores by income group use the scale:\n  - 3 = advanced practices\n  - 2 = good practices\n  - 1 = basic practices\n- Country group abbreviations:\n  - AE = Advanced Economies\n  - EME = Emerging Markets and Middle-Income Economies\n  - LIDC = Low-Income Developing Countries"
    }
  ],
  "bullets": [
    "Fiscal risks can have a significant impact on government finances; recent experiences, including the COVID-19 pandemic and the global financial crisis, have led to large increases in government deficits and debt.",
    "Fiscal risks arise from a variety of sources:",
    "A government's ability to respond to fiscal risks depends on:",
    "The IMF has developed practical tools, diagnostics, and guidance notes to help countries identify, quantify, disclose, and manage fiscal risks.",
    "The IMF's Fiscal Risk Assessments and Fiscal Transparency Evaluations:",
    "The IMF's Fiscal Risk Toolkit provides practical tools to help countries assess and monitor fiscal risks.",
    "The IMF’s Fiscal Affairs Department works closely with member countries to build capacity to identify, analyze, and manage fiscal risks.",
    "Capacity development supports:",
    "Over the past year the IMF's Fiscal Affairs Department and Regional Capacity Development Centers:",
    "The IMF’s fiscal risk assessment tools:",
    "Fiscal risk assessments have been undertaken as part of 35 Fiscal Transparency Evaluations completed since 2014",
    "IMF Fiscal Transparency Evaluations assess Fiscal Risk Analysis, Disclosure and Management Practices.",
    "Average scores by income group use the scale:",
    "Country group abbreviations:",
    "**Regional Capacity Development Centers**",
    "[Fiscal Transparency Code (PDF)](/external/np/fad/trans/code2019.pdf){rel=\"external\" type=\"application/pdf\"}"
  ],
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      "title": "Regional Capacity Development Centers",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/capacity-developement/brochures/regional-capacity-development-centers-brochure-september-2019.pdf",
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      "title": "Fiscal Transparency Code",
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