Issued since 1995
Welcome to the Finance of Ukraine site (demo).
Login | Register
ACADEMY
OF FINANCIAL
MANAGEMENT
.


№ 11/2018

№ 11/2018

Fìnansi Ukr. 2018 (11): 39–53
https://doi.org/10.33763/finukr2018.11.039

PUBLIC FINANCE MANAGEMENT

IVANYTSKA Olga 1, KOSHCHUK Tetiana 2

1National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”
OrcID ID : https://orcid.org/0000-0001-5505-8849
2SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603


Application of IMF recommendations and world experience in fiscal risk management practices


The article presents the results of the analysis of international documents designed to resolve issues related to fiscal risk managemen, in particular the IMF's report “Analyzing and Managing Fiscal Risks – Best Practices”. It contains a number of conclusions on fiscal risk management as well as publications of a report on fiscal risks and financial vulnerability. It is shown that it is necessary to take into account the recommendations of international organizations on practical steps to implement strategic and tactical measures to manage fiscal risks. The sequence of such actions is defined, in particular: identification of risks and their sources, determination of instruments of their mitigation, formation of the fiscal reserve. It is proved that the whole set of sources of fiscal risks in their groups should be identified while developing the fiscal risk management strategy. The necessity of taking into account the probability of materialization of each type of risk, assessment of the impact of unwanted events on the fiscal position of the country is substantiated. The main instruments of risk mitigation are listed, including direct restrictions, indirect constraints, transferring risks to other entities. The research shows that in the process of managing fiscal risks, it is necessary to develop appropriate institutional mechanisms, in particular the creation of a centralized fiscal risk monitoring body. The article presents data on a number of countries of different regions (Australia, Brazil, the Netherlands, Serbia, Philippines, Finland), whose experience shows the significant success in managing fiscal risks and publishing relevant reports. The necessity of the application by the Ukrainian Government of certain successful practices of the listed countries and IMF guidelines are substantiated.

Keywords:fiscal risks, fiscal risk management, financial vulnerability, IMF recommen­dations, identification of fiscal risks, materialization of risks

JEL: F61, G28, O23


IVANYTSKA O. . Application of IMF recommendations and world experience in fiscal risk management practices / O. . IVANYTSKA, T. . Koshchuk // Фінанси України. - 2018. - № 11. - C. 39-53.

Article original in Ukrainian (pp. 39 - 53) DownloadDownloads :1027
1. Bohdan, I. V., Yara, T. Yu., & Konovalenko, D. V. (2016). Diagnostics of general government position in Ukraine. Finance of Ukraine, 4, 27-49 [in Ukrainian].

2. Gasanov, S. S., Kudriashov, V. P. (2015). The budget deficit restrictions in conditions of fiscal risks. RFI Scientific Papers, 3, 5-14 [in Ukrainian].

3. Gasanov, S. S. (2017). Fiscal risks and fiscal targeting in the system of public finance management under institutional uncertainty. RFI Scientific Papers, 2, 5-24 [in Ukrainian].

4. Iefymenko, T. I. (2012). Fiscal space for anti-crisis regulation. Kyiv: DNNU "Akademiia finansovoho upravlinnia" [in Ukrainian].

5. Iefymenko, T. I. (2017). Fiscal space and stabilization of public finance. Finance of Ukraine, 9, 7-28 [in Ukrainian].

6. Lunina, I. O. (2017). Risks of the long-term solvency of the state. Finance of Ukraine, 4, 7-20 [in Ukrainian].

7. Ivanytska, O. M., Koshchuk, T. V. (2017). Fiscal risks management related to activities of state enterprises in Ukraine. Finance of Ukraine, 2, 64-80 [in Ukrainian].

8. Ivanytska, O. M., Koshchuk, T. V. (2018). Methodological grounds of fiscal risks identification. Finance of Ukraine, 6, 45-57 [in Ukrainian].
doi.org/10.33763/finukr2018.06.045

9. Proskura, V. F., Bilak, R. H. (2017). Methodological approaches to risk management. Economy and Society, 9. Retrieved from economyandsociety.in.ua/journal/9_ukr/102.pdf [in Ukrainian].

10. IMF. (2016, June). Analyzing and Managing Fiscal Risks - Best Practices. Retrieved from www.imf.org/external/np/pp/eng/2016/050416.pdf.

11. Cangiano, M. (2017, February 6-8). Disclosing and Managing Fiscal Risks. Rome. Retrieved from www.rgs.mef.gov.it/_Documenti/VERSIONE-I/Comunicazione/Workshop-e-convegni/Seminario_2017-02-6_8/04_-_Disclosing_and_Managing_Fiscal_Risks_-_Cangiano.pdf.

12. Cebotari, A. et al. (Eds.). (2008). Fiscal risks: sources, disclosure, and management. Washington, D. C.: International Monetary Fund. Retrieved from www.imf.org/external/pubs/ft/dp/2009/dp0901.pdf.

13. Cebotari, A. (2008). Contingent Liabilities: Issues and Practice. IMF Working Paper, 245.
doi.org/10.5089/9781451871036.001

14. What should our Fiscal risks report cover? (2016, October). OBR Discussion Paper, 2. Retrieved from obr.uk/docs/dlm_uploads/Fiscal-risks-discussion-paper-1.pdf.

15. Guillermo, J., Murillo, V. (2011). The Brazilian Federal Budgetary Process. The George Washington University, IBI - The Institute of Brazilian Business&Public Management Issues. Retrieved from www2.gwu.edu/~ibi/minerva/Spring2011/Juan_Murillo.pdf.

16. Ministry of Finance of Netherlands. (2011). The Government finances shock proof: A risk analysis of the Dutch public finances. Retrieved from www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=2ahUKEwjr56vM_bDeAhUBFywKHe5PAfQQFjAAegQICRAC&url=https%3A%2F%2Fenglish.dsta.nl%2Fbinaries%2Fdsta-english%2Fdocuments%2Fpublication%2F2011%2F09%2F16%2Fthe-government-finances-shock-proof%2Fthe-government-finances-shock-proof.pdf&usg=AOvVaw22bF3tpnGjdCZwYR6A9H0B.

17. Ministry of Finance of Finland. (2015, April). General Government Fiscal Plan 2016-2019.

18. Fiscal Responsibility Law. (n. d.). www.v-brazil.com. Retrieved from www.v-brazil.com/government/laws/LRF.html.