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Fiscal Risk Assessment at the CBR: A Conceptual Framework

Author

Listed:
  • Ludovit Odor

    (Council for Budget Responsibility)

Abstract
To identify fiscal risk, the CBR uses a pragmatic approach by employing a set of models and indicators, quantitative and qualitative assessments organized in a coherent framework. The inter-temporal net worth serves as an organizing principle. It has the advantage over other frameworks that: i) is directly comparable to budget figures (both ex-ante and ex-post), ii) easier to communicate to policy makers, iii) do not rely on ad-hoc categories but is directly linked to the inter-temporal budget constraint, iv) is embedded in the constitutional Act on Fiscal Responsibility and v)promotes easier detection of fiscal gimmicky. This paper also briefly summarizes the toolkit of the CBR and proposes three „communication devices“, which can in our view help to increase the understanding of fiscal risks among policymakers and the general public.

Suggested Citation

  • Ludovit Odor, 2014. "Fiscal Risk Assessment at the CBR: A Conceptual Framework," Discussion Papers Discussion Paper No. 1/20, Council for Budget Responsibility.
    • Handle: RePEc:cbe:dpaper:201401
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Zuzana Mucka, 2015. "Is the Maastricht debt limit safe enough for Slovakia?," Working Papers Working Paper No. 2/2015, Council for Budget Responsibility.

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    More about this item

    Keywords

    fiscal risk; contingent liabilities; fiscal limit;
    All these keywords.

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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