fiscal transparency, roscs and budget execution world bank seminar washington dc april 9, 2003
TRANSCRIPT
Fiscal Transparency, ROSCs and Budget Execution
Fiscal Transparency, ROSCs and Budget Execution
World Bank SeminarWashington DCApril 9, 2003
TOPICS
Rationale for transparency
ROSC process
Key findings
Linkages with GFS and
accounting standards
Structure of the Code
• Roles and responsibilities of and within government should be clear
• Comprehensive reliable information on fiscal activities should be available to the public
• The processes of budget preparation, execution, and reporting should be open
• Integrity of information should be assured
The Code is based on four general principles:
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
Promotion depends on many
groups... IFIs and bilateral support of
government
Financial analysts concern with
transparency
Civil society concern with public
information and participation
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
ROSC procedures
Questionnaire and self-
assessment
Staff review and assessment
Country review
Publication
Article IV and ROSCs
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
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.
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)
ROSC Program
Chart 1. ROSC Progress
3
9
1412
30
19
0
10
20
30
40
50
60
70
80
Fiscal Years
Nu
mb
er o
f C
oun
trie
s
Experimental 2nd Round
2001 2002
(12)
(26)
(38)
(68)
Completed Forecast
( ) CumulativeNumber completed
+
+
+
+
+
Planned
Currently Proposed
1999 2000 2003 2004
+(54)
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;
Addressing poor data quality... Establish standard fiscal reporting
(GFS) Getting basic reconciliation right Move to accrual basis reporting (GFSM
2001) Adoption of international accounting standards (IPSAS) at an appropriate paceTransparency code emphasizes disclosure of data relevant to macrofiscal policy; accounting emphasizes point of recognition of assets and liabilities.