Assessing Fiscal Risks from State-Owned Enterprises: Benchmarking and Stress Testing

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By Anja Baum, Paulo Medas, Alberto Soler, and Mouhamadou Sy^[1]

State-Owned Enterprises (SOEs) are present in most countries around the world, operating in core sectors of the economy and providing public services. They operate mostly in sectors such as public utilities (electricity, water), energy, transportation and banking but are also found in manufacturing and trade. Among developing economies, they are central players in providing essential infrastructure for economic development.

How to Strengthen Performance Based Budgeting

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Posted by Imran Aziz, Robert Clifton and Kubai Khasiani[1]

 

In October 2021, a workshop on Performance Based Budgeting (PBB) organized by three of the IMF’s Regional Technical Assistance Centers in Africa brought together over 80 technical staff from ministries of finance in 18 countries and Zanzibar. It explored some of the key challenges that countries have faced in implementing PBB. The countries represented[2] consisted of a mix of early PBB reformers, newer reformers, and those yet to embark on the reform process.

COVID-19 as an Opportunity for PFM Transformation in Health

 

Posted by Hélène Barroy and Joseph Kutzin[1]

 

COVID-19 has been a stress test for all Public Financing Management (PFM) systems. Most countries have temporarily relaxed PFM rules to provide greater financial flexibility while tailoring accountability mechanisms. Since the inception of the crisis, the World Health Organization (WHO) has been monitoring country PFM modalities to formulate, execute and account for COVID-19 health spending, including vaccine roll-out, in national budgets.

Upgrading Fiscal Risk Management in Southeast Europe in Response to COVID-19

Posted by Arturo Navarro[1]

 

The IMF’s Fiscal Affairs Department (FAD) provides supports to six beneficiaries in Southeast Europe (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia) to develop their human and institutional capacities related to public financial management (PFM). This regional engagement is mainly provided through the Revenue Administration and Public Financial Management Reform in Southeast Europe program, an initiative funded by the European Commission and the Swiss State Secretariat for Economic Affairs (SECO). Since the beginning of the COVID-19 pandemic, the program has given priority to the design and implementation of tools to counter the impact of the crisis, especially fiscal risk management.

Strengthening PFM Processes for Enhanced Development Outcomes

Strengthening PFM Processes for Enhanced Development Outcomes

Posted by Uzma Ashraf Barton, Adam Kadir, Tim Robinson, Inés Jiménez-Ontiveros, and Joseph McGrann[1]

 

Strong PFM and Public Investment Management (PIM) systems support investment in key public infrastructure which is an enabler of economic growth, improved service delivery and good development outcomes. In contrast, inefficiencies in PIM processes, as measured in an IMF study, can on average lead to a 30 percent loss of return on investment. Such losses, however, can be minimized by putting in place PFM and PIM processes that are efficient, effective, and equitable while supporting emergency responses to the Covid pandemic. Over USD 14 trillion was spent globally in COVID-19 related responses in 2020.