Monitoring and reporting on fiscal risks
The arrangements for managing and monitoring fiscal risks include a risk management policy regarding acceptable fiscal risks
Review of relevant documentation and interviews with officials to assess whether arrangements are in place to manage and monitor fiscal risks and if fiscal risks have been identified, monitored and reported on annually.
Clear accountability arrangements for identifying, estimating, analysing and monitoring specific fiscal risks are established
Review of relevant documentation and interviews with officials to assess whether arrangements are in place to manage and monitor fiscal risks and if fiscal risks have been identified, monitored and reported on annually.
The arrangements to manage and monitor fiscal risks include a central oversight body or committee to monitor fiscal risks
Review of relevant documentation and interviews with officials to assess whether arrangements are in place to manage and monitor fiscal risks and if fiscal risks have been identified, monitored and reported on annually.
Fiscal risks are identified in the budget
Review of relevant documentation and interviews with officials to assess whether arrangements are in place to manage and monitor fiscal risks and if fiscal risks have been identified, monitored and reported on annually.
Fiscal risks are monitored at least twice a year
Review of relevant documentation and interviews with officials to assess whether arrangements are in place to manage and monitor fiscal risks and if fiscal risks have been identified, monitored and reported on annually.
Annual reporting on fiscal risks
Reporting of the central government’s explicit contingent liabilities from its own programs and projects, including those of extrabudgetary units. Explicit contingent liabilities include umbrella state guarantees for various types of loans for example, mortgage loans, student loans, agriculture loans, and small business loans. Explicit contingent liabilities also include state insurance schemes, such as deposit insurance, private pension fund insurance, and crop insurance. The financial implications of ongoing litigation and court cases should be included, although these are often difficult to quantify. State guarantees for non-sovereign borrowing by private sector enterprises and guarantees on private investments of different types, including special financing instruments such as PPPs, should be reported. Such contingencies may result in a significant and quantifiable financial risk for government and should be included in the assessment of this indicator. Significant contingent liabilities are defined as those with a potential cost in excess of 0.5 percent of total Budgetary Central Government (BCG) expenditure and for which an additional appropriation by the legislature would be required. Annual reporting may be in separate reports such as a fiscal risks statement or integrated into another report such as a budget execution or performance report.