Posted by Geremia Palomba
What do Peru, Finland, Romania, and the Philippines have in common? They all undertook an assessment of their fiscal transparency practices in 2015 and published the results.
The results for Peru were very positive. According to the IMF, the majority of the assessed practices met good or advanced standards. The outcome is close to the results of the assessments performed in advanced and emerging market countries. The IMF assesses countries’ fiscal transparency practices against the principles of its own Code of Fiscal Transparency and focuses on the three areas of fiscal reporting, fiscal forecasting and budgeting, and fiscal risk management. In the case of Peru, the IMF undertook an additional pilot assessment of the transparency practices in managing resource revenues, as they are critical for good budgeting and sound fiscal policymaking for the country. Over the last decade, revenue from natural resources in Peru represented about 13 percent of general government revenue and 40 percent of local government revenue.