This presentation will focus on global fiscal policy challenges. The external environment has become more difficult, led by the sharp decline in commodity prices, China´s growth slowdown and economic rebalancing, and a tightening of global financial conditions. In many cases, these adverse external conditions are compounded by domestic impediments, such as high private sector leverage and structural rigidities. The session will discuss the role that fiscal policy can play in this uncertain and rapidly evolving environment.
Chair:This session will present the recent international experience particularly in Europe of support to the financial sector, subnational governments, state owned enterprises, and other contingent liabilities in the wake of the financial crisis. It will recognize that most of these contingent liabilities were outside of the supervision of the central government finances. It will highlight the need for a comprehensive balance sheet approach, given that for good fiscal policy it is important to have reliable and timely financial information covering the entire public sector.
Chair:This session will first discuss how to assess the level of public spending in a comparative perspective. It will highlight the importance of appropriate fiscal projections with a view to address long-term fiscal challenges. It will discuss the available tools to enhance spending flexibility, in the context of aging populations and growing pension. Then this session will also focus on spending efficiency, drawing on the experience of OECD countries in the areas of education, health and infrastructure investment.
Chair:This session will present the international evidence on subnational fiscal crises of the last decades. It will focus on the causes and costs of sub-national fiscal crises; on ways to prevent them, including fiscal rules and other borrowing constraints; and on ex-ante and ex-post resolution systems.
Chair:This session will present the new IMF code of fiscal transparency and the need to expand the quality and reliability of fiscal information. It will present a new generation of fiscal rules and institutional reforms, including with the creation of independent fiscal councils. It will emphasize the need to align fiscal policy implementation and medium-term fiscal frameworks. It will also highlight the importance of a more transparent relationship between treasuries and central bank.
Chair:Synthesis of the discussions held during the seminar, with an emphasis on their implications to macroeconomic policy.
Chair: