fiscal transparency, roscs and budget execution marco cangiano imf-fad world bank seminar washington...
TRANSCRIPT
![Page 1: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/1.jpg)
Fiscal Transparency, ROSCs and Budget Execution
Marco CangianoIMF-FAD
Fiscal Transparency, ROSCs and Budget Execution
Marco CangianoIMF-FAD
World Bank SeminarWashington DCNovember 5, 2003
![Page 2: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/2.jpg)
TOPICS
Rationale for transparency
ROSC process
Key findings
Linkages with GFS and
accounting standards
![Page 3: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/3.jpg)
Structure of the Code
• Institutional clarity: government’s role and the way its agencies interact
• Commitment to make comprehensive information available to the public
• Open processes of budget preparation, execution, and reporting
• Assurance of integrity of information by strong oversight
The Code is based on four general principles:
![Page 4: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/4.jpg)
4 general principles 10 specific principles 37 good practices
The Code is organized in a hierarchy of principles and practices, which progressively define good practice in fiscal transparency:
The Code’s Vertical Structure
![Page 5: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/5.jpg)
Why Transparency?
Improved transparency is seen as a necessary basis for improving efficiency and effectiveness of fiscal management:
• Better information will make government more accountable and lead to better fiscal policies
• Transparency will be reinforced by financial markets—which will provide further incentives for sound fiscal policies
![Page 6: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/6.jpg)
Promotion depends on many
groups... IFIs and bilateral support of
government
Financial analysts concern with
transparency
Civil society concern with public
information and participation
![Page 7: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/7.jpg)
Growing impact of
transparency assessments Governments identify internal
management reform priorities
Rating agencies/market analysts
use fiscal ROSCs
Civil society use fiscal ROSCs and
use code to make assessments
![Page 8: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/8.jpg)
IMF Objectives and tools
Promote principles and good
practice --Code and Manual
Integrate with Fund surveillance
--ROSCs*
Build incentives & improve
practices --technical assistance
& outreach
* Reports on Observance of Standards and Codes
![Page 9: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/9.jpg)
ROSC procedures
Questionnaire and self-
assessment
Staff review and assessment
Country review
Publication
Article IV and ROSCs
![Page 10: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/10.jpg)
ROSCs play a central role
Dialogue with member countries on importance of transparency Links with Fund programs and TA from Fund and others Publication signals a commitment to improve transparency
![Page 11: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/11.jpg)
But need to coordinate....
Many agencies assess standards or related aspects Duplication, inefficiency, high country costs, information overload Clarity of agency objectives Sustained, focused efforts.
![Page 12: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/12.jpg)
54 countries have completed fiscal ROSCs
48 are published on the IMF website
Some focus on emerging market countries—but a wide range covered
http://www.imf.org/external/ IMF at Work/Reports on the Observance of Standards and Codes (ROSCs)
![Page 13: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/13.jpg)
Standards & Codeshttp://www.imf.org/external/standards/index.htm
62 countries have completed fiscal ROSCs
Most are published on the IMF website
Includes all G7, most Eastern European and CIS countries, and many Latin American countries
![Page 14: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/14.jpg)
Key findings to date….
Most ROSC participants are taking some steps to improve transparency
Around 60 percent of market access countries are participating
A range of common problems identified
Poor fiscal data quality Off-budget activity Tax expenditures and discretionary tax
administration Poor definition of intergovernmental relations
See http://www.imf.org/external/np/pdr/sac/2003/030503.htm International Standards: Strengthening Surveillance, Domestic Institutions, and
International Markets (SM/O3/86) Supplement 2;
![Page 15: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/15.jpg)
GFSM 2001
• GFSM 2001 is an improved framework for collection and dissemination of government statistics.
• The focus will be on advantages and limitations of the framework for economic analysis of government operations and for budget management.
![Page 16: Fiscal Transparency, ROSCs and Budget Execution Marco Cangiano IMF-FAD World Bank Seminar Washington DC November 5, 2003](https://reader036.vdocument.in/reader036/viewer/2022062805/5697bfc71a28abf838ca8025/html5/thumbnails/16.jpg)
GFSM 2001
Synchronized with national accounts—1993 SNA Integrates flows and stocks—a balance sheet approach Cash plus reporting—initially cash, but progressive move to accrual basis reporting Will link with international accounting standards