Government Contingent Liabilities and the Measurement of Fiscal Impact:

Conventional fiscal accounting methodologies do not appropriately account for governments' noncash policies, such as their contingent liabilities. When these liabilities are called, budget costs can be large, as evidenced by the United States' saving and loan crisis. In general, deficit me...

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Bibliographic Details
Corporate Author: International Monetary Fund (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 1990
Series:IMF Working Papers
Online Access:UBW01
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Summary:Conventional fiscal accounting methodologies do not appropriately account for governments' noncash policies, such as their contingent liabilities. When these liabilities are called, budget costs can be large, as evidenced by the United States' saving and loan crisis. In general, deficit measures may underestimate the macroeconomic impact of government policies, promoting the substitution of noncash for cash expenditure and increasing future financing requirements. The paper describes extended deficit measures to address the problem, but notes their limited practical value. Nonetheless, some alternative methods of valuing contingent liabilities are proposed to gauge fiscal impact and facilitate budgetary control
Physical Description:1 Online-Ressource (40 p)
ISBN:145196711X
9781451967111

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