IMF FISCAL TRANSPARENCY CODE

The Fiscal Transparency Code
A. FISCAL TRANSPARENCY PRINCIPLES
I. Fiscal Reporting
Fiscal reports should provide a comprehensive, relevant, timely, and reliable overview of thegovernment’s financial position and performance.
1.1. Coverage: Fiscal reports should provide a comprehensive overview of the fiscal activities of the
public sector and its sub-sectors, according to international standards.
1.1.1. Coverage of Institutions: Fiscal reports cover all entities engaged in public activity
according to international standards.
1.1.2. Coverage of Stocks: Fiscal reports include a balance sheet of public assets, liabilities,
and net worth.
1.1.3. Coverage of Flows: Fiscal reports cover all public revenues, expenditures, andfinancing.
1.1.4. Coverage of Tax Expenditures: The government regularly discloses and manages
revenue loss from tax expenditure.
1.2. Frequency and Timeliness: Fiscal reports should be published in a frequent, regular, and timely
manner.
1.2.1. Frequency of In-Year Reporting: In-year fiscal reports are published on a frequent
and regular basis.
1.2.2. Timeliness of Annual Financial Statements: Audited or final annual financial
statements are published in a timely manner.
1.3. Quality: Information in fiscal reports should be relevant, internationally comparable, andinternally and historically consistent.
1.3.1. Classification: Fiscal reports classify information in ways that make clear the use of
public resources and facilitate international comparisons.
1.3.2. Internal Consistency: Fiscal reports are internally consistent and include
reconciliations between alternative measures of summary fiscal aggregates.
1.3.3. Historical Revisions: Major revisions to historical fiscal statistics are disclosed andexplained.

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IMF FISCAL TRANSPARENCY CODE

1.4. Integrity: Fiscal statistics and financial statements should be reliable and subject to external
scrutiny and facilitate accountability.
1.4.1. Statistical Integrity: Fiscal statistics are compiled and disseminated in accordancewith international standards.
1.4.2. External Audit: Annual financial statements are subject to a published audit by anindependent supreme audit institution which validates their reliability.
1.4.3. Comparability of Fiscal Data: Fiscal forecasts, budgets, and fiscal reports arepresented on a comparable basis, with any deviations explained.

II. Fiscal Forecasting and Budgeting
Budgets and their underlying fiscal forecasts should provide a clear statement of thegovernment’s budgetary objectives and policy intentions, and comprehensive, timely, andcredible projections of the evolution of the public finances.
2.1. Comprehensiveness: Fiscal forecasts and budgets should provide a comprehensive overview offiscal prospects.
2.1.1. Budget Unity: Revenues, expenditures, and financing of all central government
entities are presented on a gross basis in budget documentation and authorized by thelegislature.
2.1.2. Macroeconomic Forecasts: The budget projections are based on comprehensive
macroeconomic forecasts, which are disclosed and explained.
2.1.3. Medium-term Budget Framework: Budget documentation includes outturns andprojections of revenues, expenditures, and financing over the medium term on the same
basis as the annual budget.
2.1.4. Investment Projects: The government regularly discloses its financial obligations
under multi-annual investment projects and subjects all major projects to cost-benefit
analysis and open and competitive tender.
2.2. Orderliness: The powers and responsibilities of the executive and legislative branches ofgovernment in the budget process should be defined in law, and the budget should be presented,
debated, and approved in a timely manner.
2.2.1. Fiscal Legislation: The legal framework clearly defines the time table for budget
preparation and approval, key contents of the budget documentation, and the powers andresponsibilities of the executive and legislature in the budget process.
2.2.2. Timeliness of Budget Documents: The legislature and the public are consistently
given adequate time to scrutinize and approve the annual budget.
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2.3. Policy Orientation: Fiscal forecasts and budgets should be presented in a way that facilitates
policy analysis and accountability.
2.3.1. Fiscal Policy Objectives: The government states and reports on clear and measurable
objectives for the public finances.
2.3.2. Performance Information: Budget documentation provides information regarding
the objectives and results achieved under each major government policy area.
2.3.3. Public Participation: The government provides citizens with an accessible summaryof the implications of budget policies and an opportunity to participate in budget
deliberations.
2.4. Credibility: Economic and fiscal forecasts and budgets should be credible.
2.4.1. Independent Evaluation: The government’s economic and fiscal forecasts andperformance are subject to independent evaluation.
2.4.2. Supplementary Budget: Any material changes to the approved budget are
authorized by the legislature.
2.4.3. Forecast Reconciliation: Budget documentation and any subsequent updates explain
any material changes to the government’s previous fiscal forecasts, distinguishing the fiscal
impact of new policy measures from the baseline.

III. Fiscal Risk Analysis and Management
Governments should disclose, analyze, and manage risks to the public finances and ensure
effective coordination of fiscal decision-making across the public sector.
3.1. Risk Disclosure and Analysis: Governments should publish regular summary reports on risks totheir fiscal prospects.
3.1.1. Macroeconomic Risks: The government reports on how fiscal outcomes might differ
from baseline forecasts as a result of different macroeconomic assumptions.
3.1.2. Specific Fiscal Risks: The government provides a regular summary report on themain specific risks to its fiscal forecasts.
3.1.3. Long-Term Fiscal Sustainability Analysis: The government regularly publishes
projections of the evolution of the public finances over the long term.

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3.2. Risk Management: Specific risks to the public finances should be regularly monitored, disclosed,
and managed.
3.2.1. Budgetary Contingencies: The budget has adequate and transparent allocations forcontingencies that arise during budget execution.
3.2.2. Asset and Liability Management: Risks relating to major assets and liabilities aredisclosed and managed.
3.2.3. Guarantees: The government’s guarantee exposure is regularly disclosed andauthorized by law.
3.2.4. Public Private Partnerships: Obligations under public-private partnerships are
regularly disclosed and actively managed.
3.2.5. Financial Sector Exposure: The government’s potential fiscal exposure to thefinancial sector is analyzed, disclosed, and managed.
3.2.6. Natural Resource Stocks and Flows: The government’s interest in exhaustible
natural resource assets and their exploitation is valued, disclosed, and managed.
3.2.7. Environmental Risks: The potential fiscal exposure to natural disasters and othermajor environmental risks is analyzed, disclosed, and managed.
3.3. Fiscal Coordination: Fiscal relations and performance across the public sector should beanalyzed, disclosed, and coordinated.
3.3.1. Sub-National Governments: Comprehensive information on the financial conditionand performance of sub-national governments, individually and as a consolidated sector, iscollected and published.
3.3.2. Public Corporations: The government regularly publishes comprehensive
information on the financial performance of public corporations, including any quasi-fiscal
activity undertaken by them.

IV. Resource Revenue Management
Government revenues from natural resource exploration and extraction activity should becollected, managed, and disbursed in an open and transparent manner.
4.1. Resource Ownership and Rights: Resource rights should be clearly defined, with open andtransparent procedures for their allocation.
4.1.1. Legal Framework for Resource Rights: The legal framework clearly defines resource
ownership, rights, obligations, and responsibilities at all stages of natural resource
development.
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4.1.2. Allocation of Resource Rights: Resource rights are allocated through an open andtransparent process.
4.1.3. Disclosure of Resource Rights Holdings: The government maintains an up-to-datepublic register of resource rights holdings.
4.2. Resource Revenue Mobilization: Resource revenue generation and collection should begoverned by clear and published rules and procedures.
4.2.1. Fiscal Regime for Natural Resources: The fiscal regime for revenue generation fromnatural resource sectors is clear, comprehensive, and governed by law.
4.2.2. Resource Revenue Administration: There are clear and impartial policies andprocedures for resource revenue administration, with regular reporting on administration
activities.
4.3. Resource Revenue Utilization: Resource revenues should be managed within the budget andmacro-fiscal framework in accordance with clear fiscal policy objectives, and any natural resource
fund should be operated in a consistent and transparent manner.
4.3.1. Resource Revenue Forecasting: Resource revenue forecasts are based on clearly
disclosed assumptions and methodology, on a time horizon consistent with the fiscal policy
objectives.
4.3.2. Budget Integration of Resource Revenue: Resource revenues are managed throughannual budgets in accordance with clear fiscal policy objectives for the use of volatile andexhaustible natural resources.
4.3.3. Natural Resource Funds: The governance of any resource fund is clearly defined,with regular reporting on fund operations, finances and investment performance.
4.4. Resource Activity Disclosure: Fiscal, operational, environmental and social aspects of natural
resource projects should be regularly reported on and published.
4.4.1. Reporting and Audit of Resource Revenues: Resource revenues are regularly
reported and audited.
4.4.2. Reporting by Resource Corporations: Resource corporations are required to reporton resource revenue payments, which are regularly reconciled with reported government
receipts.
4.4.3. National Resource Corporations: The governance of national resource corporations(NRC) is clearly defined, with regular reporting on operations and finances.
4.4.4. Operational, Social, and Environmental Reporting: The government reports
regularly on overall sector activity and on the status of major projects, including social andenvironmental aspects.
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#DIMENSION

1

FISCAL REPORTING

1.1

Coverage

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Fiscal reports should provide a comprehensive, relevant, timely, and reliable overview of the government’s financial position andperformance.

Fiscal reports should provide a comprehensive overview of the fiscal activities of the public sector and its subsectors,
according to international standards.

1.1.1

Coverage of

Fiscal reports cover all

Fiscal reports consolidate all

Fiscal reports consolidate all

Fiscal reports consolidate all public

Institutions

entities engaged in public

central government entities

general government entities andsector entities and report on eachactivity according toaccording to international

report on each subsector

subsector according to international

international standards.

standards.

according to international

standards.

Fiscal reports include a

Fiscal reports coverFiscal reports cover all financial

Fiscal reports cover all financial andbalance sheet of public

government cash andassets and liabilities.

nonfinancial assets and liabilities, andassets, liabilities, and net

deposits, and all debt.

standards.
1.1.2

Coverage of Stocks

net worth.

worth.
1.1.3

1.1.4

Fiscal reports cover all publicFiscal reports cover cash

Fiscal reports cover cash flows,

Fiscal reports cover cash flows, accrued

revenues, expenditures, andrevenues, expenditures, andaccrued revenues, expenditures,

revenues, expenditures, and financing,financing.

financing.

and financing.

and other economic flows.

Coverage of Tax

The government regularly

The estimated revenue loss

The revenue loss from tax

The revenue loss from tax expenditures

Expenditures

discloses and manages

from tax expenditures is

expenditures is estimated byis estimated by sector or policy area

revenue loss from tax

published at least annually.

sector or policy area and is

and is published at least annually.

published at least annually.

There is control on, or budgetary

Coverage of Flows

expenditures.

objectives for, the size of tax
expenditures.

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B. DESCRIPTION OF BASIC, GOOD, AND ADVANCED PRACTICES BY PRINCIPLE

#
1.2

DIMENSION
Frequency and

PRACTICES

PRINCIPLE

BASIC

GOOD

ADVANCED

Fiscal reports should be published in a frequent, regular, and timely manner.

Timeliness
1.2.1

Frequency of In-YearIn-year fiscal reports are

In-year fiscal reports are

In-year fiscal reports are

In-year fiscal reports are published on

Reportingpublished on a frequent andpublished on a quarterly basis,

published on a quarterly basis,a monthly basis, within a month.

regular basis.

within a quarter.

within a month.

1.2.2

Timeliness of Annual

Audited or final annual

Audited or final annual

Audited or final annual financial

Audited or final annual financial

Financial Statements

financial statements arefinancial statements arestatements are published withinstatements are published within six

published in a timely manner.

published within 12 months ofnine months of the end of themonths of the end of the financial

the end of the financial year.

financial year.

year.

Quality

Information in fiscal reports should be relevant, internationally comparable, and internally and historically consistent.

1.3.1

Classification

Fiscal reports classify

Fiscal reports include

Fiscal reports include

Fiscal reports include administrative,

information in ways thatadministrative and economic

administrative, economic andeconomic, functional and program

make clear the use of publicclassifications consistent withfunctional classificationsclassifications consistent withresources and facilitate

international standards, whereconsistent with international

international standards, whereinternational comparisons.

applicable.

standards, where applicable.

applicable.

Fiscal reports are internally

Fiscal reports include one of

Fiscal reports include two of the

Fiscal reports include all three of theconsistent and include

the following reconciliations:following reconciliations:following reconciliations: (i) fiscal

reconciliations between(i) fiscal balance and financing,(i) fiscal balance and financing,balance and financing, (ii) debt issued

alternative measures of(ii) debt issued and debt(ii) debt issued and debt

and debt holdings, and (iii) financing

summary fiscal aggregates.

holdings, and (iii) financing

holdings, and (iii) financing andand the change in the debt stock.

and the change in the debt

the change in the debt stock.

1.3.2

Internal Consistency

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stock.
1.3.3

Historical Revisions

Major revisions to historical

Major revisions to historical

Major revisions to historical

Major revisions to historical fiscal

fiscal statistics are disclosed

fiscal statistics are reported.

fiscal statistics are reported

statistics are reported with anwith an explanation for eachexplanation for each major revision

major revision.

and a bridging table between the oldand explained.

and new time series.

IMF FISCAL TRANSPARENCY CODE

1.3

DIMENSION

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

1.4

Integrity

Fiscal statistics and financial statements should be reliable and subject to external scrutiny and facilitate accountability.

1.4.1

Statistical Integrity

Fiscal statistics are compiled

Fiscal statistics are

Fiscal statistics are compiled by a

Fiscal statistics are compiled by aand disseminated indisseminated in accordance

specific government agency andprofessionally independent body andaccordance with

with international standards.

disseminated in accordance with

disseminated in accordance withinternational standards.

international standards.

international standards.
1.4.2

External Audit

Annual financial statements

An independent supreme

An independent supreme audit

An independent supreme audit

are subject to a publishedaudit institution publishes aninstitution publishes an audit

institution publishes an audit report

audit by an independent

audit report on the reliability

report stating whether theconsistent with international standards

supreme audit institutionof the government’s annual

government’s annual financial

which states whether the government’s

which validates theirfinancial statements.

statements present a true and fairannual financial statements present aview of its financial position andtrue and fair view of its financial

without a disclaimer or adverse

position and without major

audit opinion.

qualifications.

reliability.

1.4.3

Comparability of Fiscal

Fiscal forecasts, budgets,

At least one fiscal report is

Fiscal forecast/budget andFiscal forecast/budget and outturn are

Data

and fiscal reports areprepared on the same basis

outturn are comparable, and thecomparable, and the outturn ispresented on a comparable

as the fiscal forecast/budget.

outturn is reconciled with either

reconciled with both fiscal statistics

basis, with any deviations

the fiscal statistics or the final

and final accounts.

explained.

accounts.

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8 INTERNATIONAL MONETARY FUND##DIMENSIONFISCAL

2

FORECASTING AND
BUDGETING

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Budgets and their underlying fiscal forecasts should provide a clear statement of the government’s budgetary objectives and policy
intentions, and comprehensive, timely, and credible projections of the evolution of the public finances.

2.1

ComprehensivenessFiscal forecasts and budgets should provide a comprehensive overview of fiscal prospects.

2.1.1

Budget Unity

Revenues, expenditures, andBudget documentation

Budget documentation

Budget documentation incorporates all

financing of all central

incorporates all grossincorporates all gross revenues,

gross revenues, expenditures, andgovernment entities arerevenues, expenditures, andexpenditures, and financing byfinancing by central government

presented on a gross basis

financing by budgetarycentral government ministries,

ministries, agencies, extra-budgetary

in budget documentation

central government ministries

agencies, and extra-budgetaryfunds, and social security funds.

and authorized by theand agencies.

funds.

legislature.
2.1.2

Macroeconomic

The budget projections are

The budget documentation

The budget documentation

The budget documentation includes

Forecasts

based on comprehensive

includes forecasts of key

includes forecasts of key

forecasts and explanations of key

macroeconomic forecasts,

macroeconomic variables.

macroeconomic variables andmacroeconomic variables and their

their underlying assumptions.

components, as well as their

which are disclosed andexplained.
2.1.3

underlying assumptions.

Budget documentation

Budget documentation

Budget documentation includes

Budget documentation includes theincludes outturns andincludes the outturns of thethe outturns of the two preceding

outturns of the two preceding years

projections of revenues,

two preceding years andyears and medium-term

and medium-term projections ofexpenditures, and financing

medium-term projections ofprojections of revenues,

revenues, expenditures, and financing

over the medium term on

aggregate revenues,

expenditures, and financing by

by economic category and by ministry

the same basis as the annual

expenditures, and financing.

economic category.

or program.

budget.

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Medium-term Budget
Framework

DIMENSION

PRINCIPLE

2.1.4

Investment Projects

PRACTICES

BASIC

GOOD

ADVANCED

The government regularly

One of the following applies:

Two of the following apply: (i) theAll of the following apply: (i) the

discloses its financial(i) the government regularly

government regularly discloses

government regularly discloses theobligations under multi-

discloses the value of its total

the value of its total obligations

value of its total obligations underannual investment projects

obligations under multi-

under multi-annual investment

multi-annual investment projects;

and subjects all majorannual investment projects;

projects; (ii) subjects all major(ii) subjects all major projects to a

projects to cost-benefit(ii) subjects all major projects

projects to a published cost-

published cost-benefit analysis before

analysis and open andto a published cost-benefit

benefit analysis before approval;

approval; and (iii) requires all major

competitive tender.

analysis before approval; andand (iii) requires all major

projects to be contracted via open and(iii) requires all major projects

projects to be contracted via

competitive tender.

to be contracted via open

open and competitive tender.

and competitive tender.

2.2

Orderliness

The powers and responsibilities of the executive and legislative branches of government in the budget process should be
defined in law, and the budget should be presented, debated, and approved in a timely manner.

2.2.1

Fiscal Legislation

The legal framework clearly

The legal framework defines

The legal framework defines two

The legal framework defines all of thedefines the time table forone of the following: (i) theof the following: (i) the timetablefollowing: (i) the timetable for budget

budget preparation andtimetable for budget

for budget preparation andpreparation and approval; (ii) the key

approval, key contents of

preparation and approval; (ii)approval; (ii) the key content

content requirements for thethe budget documentation,

the key content requirements

requirements for the executive’s

executive’s budget proposal; andand the powers andfor the executive’s budget

budget proposal; and (iii) the(iii) the legislature’s powers to amend

responsibilities of the

proposal; and (iii) the

legislature’s powers to amend thethe executive’s budget proposal.

executive and legislature inlegislature’s powers to amend

executive’s budget proposal.

the budget process.

the executive’s budget
proposal.

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PRINCIPLE

2.2.2

Timeliness of Budget

The legislature and theDocuments

public are consistently given
adequate time to scrutinize
and approve the annual
budget.

PRACTICES

BASIC

GOOD

ADVANCED

The budget is submitted to

The budget is submitted to the

The budget is submitted to thethe legislature and madelegislature and made available tolegislature and made available to theavailable to the public at least

the public at least two months

public at least three months before theone month before the start ofbefore the start of the financial

start of the financial year and is

the financial year and isyear and is approved andapproved and published at least one

approved and published up

published by the start of themonth before the start of the financial

to one month after thefinancial year.

year.

beginning of the financial
year.

2.3

Policy Orientation

Fiscal forecasts and budgets should be presented in a way that facilitates policy analysis and accountability.

2.3.1

Fiscal Policy

The government states and

The government states and

The government states and

The government states and regularly

reports on clear andregularly reports on aregularly reports on a numerical

reports on a numerical objective formeasurable objectives fornumerical objective for theobjective for the main fiscal

the main fiscal aggregates which isthe public finances.

main fiscal aggregates which

aggregates which is both precise

both precise and time-bound and has

is either precise or time-

and time-bound.

been in place for three or more years.

Objectives

bound.
2.3.2

Budget documentation

Budget documentation

Budget documentation reports

Budget documentation reports targets

Information

provides information

includes information on thetargets for, and performancefor, and performance against, theregarding the objectives andinputs acquired under eachagainst, the outputs to beoutcomes to be achieved under eachresults achieved under eachmajor government policy

delivered under each major

major government policy area.

major government policy

area.

government policy area.

area.

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Performance

DIMENSION

2.3.3

Public Participation

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

The government provides

Government publishes an

Government publishes an

Government publishes an accessible

citizens with an accessible

accessible description ofaccessible description of recent

description of recent economic andsummary of the implications

recent economic and fiscal

economic and fiscal performancefiscal performance and prospects, asof budget policies and an

performance and prospects,

and prospects, as well as awell as a summary of the implications

opportunity to participate inas well as a summary of thesummary of the implications ofof the budget for different

budget deliberations.

implications of the budget forthe budget for a typical citizen,

demographic groups, and provides

a typical citizen.

and provides citizens with acitizens with a formal voice in budget

formal voice in budget

deliberations.

deliberations.

2.4

Credibility

Economic and fiscal forecasts and budgets should be credible.

2.4.1

Independent

The government’s economic

Budget documentation

An independent entity evaluates

An independent entity evaluates the

Evaluationand fiscal forecasts andincludes comparisonsthe credibility of thecredibility of the government’s

performance are subject tobetween the government’s

government’s economic andeconomic and fiscal forecasts, and its

independent evaluation.

economic and fiscal

fiscal forecasts.

performance against its fiscal policy
objectives.

projections and those of
independent forecasters.
2.4.2

2.4.3

Supplementary

Any material changes to the

A supplementary budget

A supplementary budget is

A supplementary budget is required

Budgetapproved budget are

regularizes expenditure

required prior to material

prior to material changes to total

authorized by theexceeding the approved

changes to total budgetedbudgeted expenditure or substantiallylegislature.

budget.

expenditure.

altering its composition.

Forecast

Budget documentation and

Differences between

Differences between successive

Differences between successive

Reconciliation

any subsequent updates

successive vintages of thevintages of the government’s

vintages of the government’s revenue,

explain any material

government’s revenue,

revenue, expenditure, andexpenditure, and financing forecasts

changes to theexpenditure, and financing

financing forecasts are broken

are broken down into the effects ofgovernment’s previous fiscal

forecasts are shown at the

down into the overall effect ofindividual policy changes,

forecasts, distinguishing theaggregate level, with a

new policies and macroeconomic

macroeconomic determinants, andfiscal impact of new policy

qualitative discussion of thedeterminants.

other factors, such as technical andmeasures from the baseline.

impact of new policies on theforecasts.

accounting adjustments.

IMF FISCAL TRANSPARENCY CODE

12 INTERNATIONAL MONETARY FUND##DIMENSIONFISCAL RISK

3ANALYSIS AND
MANAGEMENT

3.1

Risk Disclosure and

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Governments should disclose, analyze, and manage risks to the public finances and ensure effective coordination of fiscal decisionmaking across the public sector.

Governments should publish regular summary reports on risks to their fiscal prospects.

Analysis
3.1.1

Macroeconomic Risks

The government reports on

Budget documentation

Budget documentation includes

Budget documentation includes

how fiscal outcomes might

includes discussion of theboth sensitivity analysis andsensitivity analysis, alternative

differ from baseline

sensitivity of fiscal forecasts

alternative macroeconomic andscenarios, and probabilistic forecasts offorecasts as a result of

to major macroeconomic

fiscal forecast scenarios.

fiscal outcomes.

different macroeconomic

assumptions.
The main specific risks to the

The main specific risks to the fiscal

assumptions.
3.1.2

Specific Fiscal Risks

The government provides a

The main specific risks to theregular summary report on

fiscal forecasts are disclosed

fiscal forecasts are disclosed in a

forecasts are disclosed in a summary

the main specific risks to its

in a summary report andsummary report, along with

report, along with estimates of theirfiscal forecasts.

discussed in qualitative terms.

estimates of their magnitude.

magnitude and, where practicable,
their likelihood.

3.1.3

The government regularly

The government regularly

The government regularly

The government regularly publishes

Sustainability Analysis

publishes projections of the

publishes projections of the

publishes multiple scenarios for

multiple scenarios for the sustainability

evolution of the publicsustainability of the main

the sustainability of the mainof the main fiscal aggregates and any

finances over the long-term.

fiscal aggregates and any

fiscal aggregates and any healthhealth and social security funds over at

health and social security

and social security funds over at

least the next 30 years using a range offunds over at least the next

least the next 30 years using amacroeconomic, demographic, natural

10 years.

range of macroeconomic

resource, or other assumptions.

assumptions.

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Long-Term Fiscal

DIMENSION

3.2

Risk Management

Specific risks to the public finances should be regularly monitored, disclosed, and managed.

3.2.1

Budgetary

The budget has adequate

The budget includes an

The budget includes an allocation

The budget includes an allocation forContingencies

and transparent allocations

allocation for contingencies.

for contingencies with

contingencies with transparent accesstransparent access criteria.

criteria and regular in-year reportingBASIC

for contingencies that arise

GOOD

during budget execution.
3.2.2

ADVANCED

on its utilization.

Asset and Liability

Risks relating to major

All borrowing is authorized by

All borrowing is authorized by

All liabilities and significant asset

Management

assets and liabilities arelaw and the risks surrounding

law and the risks surrounding theacquisitions or disposals aredisclosed and managed.

the government’s debt

government’s financial assets andauthorized by law, and the risks

holdings are analyzed andliabilities are analyzed andsurrounding the balance sheet are

disclosed.

disclosed.

disclosed and managed according to a
published strategy.

3.2.3

3.2.4

Guarantees

The government’s guarantee

All government guarantees,

All government guarantees, their

All government guarantees, their

exposure is regularly

their beneficiaries, and thebeneficiaries, and the grossbeneficiaries, the gross exposure

disclosed and authorized

gross exposure created byexposure created by them arecreated by them, and their probability

by law.

them are published at least

published at least annually. Theof being called are published at least

annually.

maximum value of new

annually. The maximum value of new

guarantees or their stock isguarantees or their stock is authorized

authorized by law.

by law.

Public-Private

Obligations under public-

The government at least

The government at least annually

The government at least annuallyPartnerships

private partnerships areannually publishes its total

publishes its total rights,

publishes its total rights, obligations,

regularly disclosed andrights, obligations, and otherobligations, and other exposuresand other exposures under public-

actively managed.

exposures under public-

under public-private partnershipprivate partnership contracts and theprivate partnership contracts.

contracts and the expected

expected annual receipts andannual receipts and payments

payments over the life of the contracts.

over the life of the contracts.

A legal limit is also placed on
accumulated obligations.

IMF FISCAL TRANSPARENCY CODE

14 INTERNATIONAL MONETARY FUND

PRINCIPLE

PRACTICES

#

#
3.2.5

DIMENSION

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Financial Sector

The government’s potential

The authorities quantify and

The authorities quantify and

The authorities quantify and disclose

Exposurefiscal exposure to thedisclose their explicit support

disclose their explicit support totheir explicit support to the financial

financial sector is analyzed,

to the financial sector at least

the financial sector at least

sector at least annually, and regularly

disclosed, and managed.

annually.

annually, and regularly undertake

undertake an assessment of financial

an assessment of financial sector

sector stability, based on a plausible

stability.

range of macroeconomic and financial
market scenarios.

3.2.6

Natural Resource

The government’s interest in

The government publishes

The government publishes annual

The government publishes annual

Stocks and Flows

exhaustible natural resource

annual estimates of theestimates of the volume andestimates of the volume and value of

assets and their exploitation

volume of major naturalvalue of major natural resource

major natural resource assets underis valued, disclosed andresource assets, as well as theassets, as well as the volume anddifferent price scenarios, as well as the

managed.

volume and value of thevalue of the previous year’s sales

volume and value of the previous

previous year’s sales andand fiscal revenue, in line withyear’s sales and fiscal revenue, in line

fiscal revenue, in line withinternational standards.

with international standards.

international standards.
3.2.7

Environmental Risks

The potential fiscal exposure

The government identifies

The government identifies and

The government identifies andto natural disasters andand discloses the main fiscal

discloses the main fiscal risks

discloses the main fiscal risks fromother major environmental

risks from natural disasters infrom natural disasters,

natural disasters, quantifying them onrisks is analyzed, disclosed,

qualitative terms.

quantifying them on the basis of

the basis of historical experiences, andhistorical experiences.

managing them according to aand managed.

IMF FISCAL TRANSPARENCY CODE

INTERNATIONAL MONETARY FUND 15

published strategy.

3.3

DIMENSION
Fiscal

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Fiscal relations and performance across the public sector should be analyzed, disclosed, and coordinated.

Coordination
3.3.1

Sub-National

Comprehensive information

The financial condition and

The financial condition and

The financial condition and

Governmentson the financial condition

performance of sub-national

performance of sub-national

performance of sub-national

and performance of sub-governments are publishedgovernments are publishedgovernments are published quarterly,

national governments,

annually.

annually, and there is a limit on

and there is a limit on their liabilities

their liabilities or borrowing.

or borrowing.

individually and as aconsolidated sector, iscollected and published.
3.3.2

Public Corporations

The government regularly

All transfers between the

All transfers between the

All direct and indirect support

publishes comprehensive

government and public

government and public

between the government and public

information on the financial

corporations are disclosed

corporations are disclosed, andcorporations is disclosed, and based

performance of public

on at least an annual basis.

based on a published ownershipon a published ownership policy, a

corporations, including any

policy, a report on the overall

report on the overall financial

quasi-fiscal activity

financial performance of theperformance of the public

undertaken by them.

public corporations sector is

corporations sector, including

published on at least an annual

estimates of any quasi-fiscal activities

basis.

undertaken, is published on at leastan annual basis.

IMF FISCAL TRANSPARENCY CODE

16 INTERNATIONAL MONETARY FUND

#

#
4
4.1

DIMENSIONRESOURCE REVENUEPRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

Government revenues from natural resource exploration and extraction activity should be collected, managed, and disbursed in an open

MANAGEMENT

and transparent manner.

Resource

Resource rights should be clearly defined, with open and transparent procedures for their allocation.

Ownership andRights
4.1.1

4.1.2

Legal Framework for

The legal framework clearly defines

The legal framework clearly

The legal framework clearly

The legal framework clearly defines

Resource Rights

resource ownership, rights,

defines rights, obligations

defines rights, obligations andrights, obligations and responsibilities

obligations, and responsibilities atand responsibilities of all

responsibilities of all participantsof all participants in exploration andall stages of natural resource

participants in exploration,

in exploration and extraction of

extraction of natural resources, alldevelopment.

and extraction of natural

natural resources, all laws,

laws, regulations, and model licenses

resources, and all laws,

regulations, and model licenses

or contracts are published, there areregulations, and modelor contracts are published, andno legal impediments to the fulllicenses or contracts are

there are no legal impediments

disclosure of non-commerciallypublished.

to the full disclosure of non-sensitive information, and publiccommercially sensitive

access to contracts and licenses isinformation.

guaranteed by law.

Resource rights are allocated

There is an open process for

There is an open process for

There is an open process for granting

Resource Rights

through an open and transparent

granting of resource rights

granting of resource rights, withof resource rights with predefined andprocess.

with predefined andpredefined and publishedpublished qualification and evaluation

published qualification andqualification and evaluation

criteria, publication of details of all

evaluation criteria andcriteria, and publication of details

applications received and justification

publication of all rights

of all applications received andof the final award.

granted.

rights granted.

IMF FISCAL TRANSPARENCY CODE

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Allocation of4.1.3

4.2

DIMENSION

PRINCIPLE

PRACTICES

BASIC

GOOD

ADVANCED

The government maintains

The government maintains and

The government maintains andDisclosure of

The government maintains an up-

Resource Rights

to-date public register of all

and publishes an up-to-datepublishes an up-to-date register

publishes an up-to-date register of all

Holdings

resource rights holdings.

register of all resource rights

of all resource rights holdings,

resource rights holdings, including

holdings, including location,

including location, type andlocation, type and duration of thetype and duration of theduration of the resource rights, allresource rights, all signed contracts

resource rights.

signed contracts and licenses,

and licenses, and details of theand details of the beneficial

beneficial owner(s) and beneficial

owner(s) of resource rights.

ownership structure of resource rights.

Resource Revenue

Resource revenue generation and collection should be governed by clear and published rules and procedures.

Mobilization
4.2.1

Fiscal Regime for

The fiscal regime for revenue

The fiscal regime defines in

The fiscal regime defines in

The fiscal regime defines in publicly

Natural Resources

generation from natural resource

publicly available laws,

publicly available laws,

available laws, regulations and model

sectors is clear, comprehensive,

regulations and model

regulations and model

contracts/licenses the rates andand governed by law.

contracts/licenses the rates

contracts/licenses the rates andmethodology for calculating the baseand methodology formethodology for calculating theof all revenue instruments, including

calculating the base of allbase of all revenue instruments,

variations set out in project specificrevenue instruments.

including variations set out incontracts, licenses and agreements,

project-specific contracts, licenses

and any changes to the regime are

and agreements.

made in an open and consultative way.

IMF FISCAL TRANSPARENCY CODE

18 INTERNATIONAL MONETARY FUND#

PRINCIPLE

PRACTICES#DIMENSION

4.2.2

Resource Revenue

There are clear and impartial

Resource revenue collecting

Resource revenue collecting

Resource revenue collecting

Administration

policies and procedures for

authorities publish annual

authorities publish annual reports

authorities publish annual reports on

resource revenue administration,

reports on resource revenue

on resource revenue assessment

resource revenue assessment andwith regular reporting on

assessment and collection,and collection, taxpayer andcollection, taxpayer audit andadministration activities.

taxpayer and contractor

contractor audit and compliancecompliance activities, there is a clear

audit and complianceactivities, and there is a clear andand impartial dispute resolution

activities.

impartial dispute resolution

process and annual reporting on

process and annual reporting on

disputes resolved and outstanding,

disputes resolved andand there are published rulings andoutstanding.

practice notes regarding

BASIC

GOOD

ADVANCED

administration of the fiscal regime.

4.3
4.3.1

Resource revenues should be managed within the budget and macro-fiscal framework in accordance with clear fiscal policy

Utilization

objectives, and any natural resource fund should be operated in a consistent and transparent manner.

Resource Revenue

Resource revenue forecasts are

Budget documentation

Budget documentation includes a

Budget documentation includes a

Forecasting

based on clearly disclosed

includes a forecast of

forecast of resource revenue by

forecast of resource revenue by

assumptions and methodology, on

resource revenue by

instrument on a time horizon

instrument on a time horizon

a time horizon consistent with the

instrument, with disclosure

consistent with the fiscal policy

consistent with the fiscal policy

fiscal policy objectives.

and justification of

objectives, with disclosure andobjectives, including sensitivity

underlying assumptions.

justification of underlying

analysis in alternative price andassumptions, and forecasting

extraction scenarios, with disclosure

methodology.

and justification of underlying
assumptions, and forecasting
methodology, as well as forecast
reconciliation of the previous year’s
resource revenue.

IMF FISCAL TRANSPARENCY CODE

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Resource Revenue

DIMENSION

PRINCIPLE

4.3.2

Budget Integration of

Resource revenues are managed

Resource revenues accruing

Resource revenues accruing toResource revenues accruing to the

Resource Revenue

through annual budgets into the general government

the general government are

general government are remitted toaccordance with clear fiscal policy

are remitted to the national

remitted to the national budget

the national budget and subnational

objectives for the use of volatilebudget and subnationaland subnational budgets (ifbudgets (if relevant) or to a naturaland exhaustible natural resources.

budgets (if relevant) or to arelevant) or to a natural resource

resource fund and are allocatednatural resource fund andfund and are allocated throughthrough the annual budget, inare allocated through thethe annual budget, in accordance

accordance with any fiscal policy

annual budget.

with any fiscal policy objectives

objectives for managing these volatilefor managing these volatile andand exhaustible resources and withexhaustible resources.

regular reporting on performance

BASIC

GOOD

ADVANCED

against those objectives.
4.3.3

Natural Resource

The governance of any resource

Any resource fund’s

Any resource fund’s governanceAny resource fund’s governance

Funds

fund is clearly defined, with regulargovernance arrangements

arrangements and operationalarrangements and operational rules

reporting on fund operations,and operational rules arerules are specified in legislation,

are specified in legislation and thefinances and investment

specified in legislation, andand the fund publishes an annual

fund publishes quarterly and annual

performance.

the fund publishes anreport on its operations, finances

reports on its operations, finances andannual report on its

and investment performance

investment performance relative tooperations, finances andrelative to strategy andstrategy and benchmarks. Annual

investment performance.

benchmarks. Annual financial

financial statements are externallystatements are externally audited.

audited.

IMF FISCAL TRANSPARENCY CODE

20 INTERNATIONAL MONETARY FUND

PRACTICES##DIMENSION

4.4

Resource Activity

PRINCIPLE

BASIC

PRACTICESGOODADVANCED

Fiscal, operational, environmental and social aspects of natural resource projects should be regularly reported on and published.

Disclosure
4.4.1

Reporting and Audit

Resource revenues are regularly

The government publishes

The government publishes

The government publishes monthlyof Resource Revenues

reported and audited.

quarterly and externallyquarterly reports on all resource

reports on all resource revenues byaudited annual reports on all

revenues by instrument, andinstrument, and externally audited

resource revenues byexternally audited annual reports

annual reports on all resource

instrument, in a timely

on all resource revenues byrevenues by project and revenue

manner, in line withproject and revenue instrument,

instrument, in a timely manner, in line

international standards.

in a timely manner, in line with

with international standards.

international standards.
4.4.2

Reporting by

Resource corporations are

As required by the

As required by the government,

As required by the government,

Resource

required to report on resource

government, resource

resource corporations publicly

resource corporations report on

Corporations

revenue payments, which arecorporations publicly reportreport on resource revenue

resource revenue payments toregularly reconciled with reported

on resource revenue

payments to government bygovernment by project and revenue

government receipts.

payments to government byproject and revenue instrument

instrument, which are reconciled withrevenue instrument.

which are reconciled withgovernment receipts in line withgovernment receipts in line withinternational standards, with nointernational standards.

material unexplained reconciliation
error.

IMF FISCAL TRANSPARENCY CODE

INTERNATIONAL MONETARY FUND 21

DIMENSION

4.4.3

National Resource

The governance of national

The governance

The governance arrangements of

The governance arrangements ofCorporations

resource corporations (NRC) isarrangements of NRCs are

NRCs are defined in line with

NRCs, including policies onclearly defined, with regulardefined in line withinternational standards inprocurement and subcontracting, arereporting on operations andinternational standards inlegislation or a publisheddefined in line with international

finances.

legislation or a publishedgovernment document. The NRC

standards, in legislation or a publishedgovernment document. The

publishes an annual governancegovernment document. The NRC

NRC publishes its budget,

report, budget, comprehensive

publishes an annual governanceand a comprehensive andand consolidated quarterly andreport, budget, comprehensive andconsolidated annual reportannual reports and externallyconsolidated quarterly and annual

in a timely manner.

audited annual financial

reports and externally audited annual

statements in a timely manner.

financial statements in a timely

Reports include details on quasi-

manner. Reports include details on

fiscal activities undertaken.

quasi-fiscal activities undertaken, and

BASIC

GOOD

ADVANCED

details of major procurement andcontract awards.
4.4.4

Operational, Social,

The government reports regularly

The government reports

The government reports annually

The government reports annually on

and Environmental

on overall sector activity and on

annually on overall sector

on overall sector activity and on

overall sector activity and on the status

Reportingthe status of major projects,

activity and on the status of

the status of major projects, andof major projects, publishes

including social and environmental

major projects.

publishes environmental andenvironmental and social impact

social impact assessments, andassessments and associatedassociated management plansmanagement plans and reports, andand reports.

identifies the fiscal risks associatedaspects.

with operational, social andenvironmental aspects of major
projects.

IMF FISCAL TRANSPARENCY CODE

22 INTERNATIONAL MONETARY FUND

PRINCIPLE

PRACTICES#IMF FISCAL TRANSPARENCY CODE

C. GLOSSARY
Annual financial statements: These are a sub-set of year-end financial reports. Where accrual-basis

accounting is used, the annual financial statements will include at least a balance sheet, an operatingstatement, a cash flow statement, and notes. Where cash-basis accounting is used, the annual
financial statement is presented as a cash-flow statement and may include a year-end budget

execution report. The annual financial statements are expected to follow the relevant accounting

standards and generally accepted accounting principles. In general, the annual financial statements

are audited and made public; however, in cases where they are not subject to audit, the final annual
financial statements will be used.

Balance sheet: The balance sheet is a comprehensive and consolidated statement of assets,

liabilities, and net worth of the government or the public sector at the end of the accounting period.
This includes financial and nonfinancial, and domestic and external assets and liabilities, as well as
further information relating to them.

Beneficial owner: The natural person(s) or publicly-listed legal entity(ies) which directly or indirectly
ultimately own or control the holder of a natural resource right within the country, sometimes
through a chain of related parties which may be held in different jurisdictions.

Beneficial ownership structure: The chain of intermediary entities connecting the beneficial ownerwith the holder of a resource right in the host country.

Borrowing: All government borrowing, including bonds, T-bills, and bank loans, as well as indirect
borrowing such as accounts payable, including expenditure arrears and unpaid tax refunds.

Budget documentation: All documentation published at or around the time of the annual budget

including the budget book, budget estimates, fiscal strategies, medium-term budget frameworks,
fiscal risk statements, finance or estimates bills, long-term public finance reports, and the budget,
finance, or appropriation act.

Contingent liabilities: Contingent liabilities are payment obligations whose timing and amount arecontingent on the occurrence of a particular discrete/uncertain future event or series of future

events. Examples include guarantees, indemnities, and letters of comfort.

INTERNATIONAL MONETARY FUND 23

IMF FISCAL TRANSPARENCY CODE

Contractor audit: An audit conducted by, or on behalf of the government, to provide assurance

that members of the contractor group or unincorporated joint venture, are in compliance with theterms and conditions of a resource contract including: maintaining adequate accounting records,

satisfying obligations to all regulatory authorities and correctly reporting income, ensuring that cost
recovery expenditures are allowable and supported by sufficient and appropriate audit evidence,that all sales of petroleum products respect the arm’s length principle, and that production statistics
are accurately collected and reported.

Contracts/agreements: Legal instrument issued by government, within the scope of the broader
legal framework, granting rights to carry out exploration and extraction activity within a specified
area and time period. Includes side letters and riders to the initial agreement. Types of contract
typically include mineral development agreements and production sharing contracts.

Distributional analysis: A quantitative assessment of the impact of a specific or overall government

policy on different segments of the population, often differentiated by income, gender, or

geographical groups. For example, the impact of a change in tax rates on different income deciles.
Expenditure arrears: Arrears are amounts that are both unpaid and past the due date for payment.

It is the stock position of invoices that have not been paid by the date specified in a contract orwithin a normal commercial period for similar transactions. Payment arrears might arise from

nonpayment by government in such areas as bills overdue from suppliers, overdue salaries ortransfers, or overdue debt repayment or debt service payments.

External audit: Audit activity under the mandate of an independent supreme audit institution (e.g.,

the Auditor General) which validates their reliability. More technical audits may be contracted by the
Auditor General to a private auditing firm. In cases where public corporations are incorporated
under company law, external audit of financial statements may be undertaken by independent
private audit firms, in accordance with company law.

Financial derivatives: A financial instrument that is linked to another specific financial instrument or

indicator or commodity and through which specific financial risks (e.g., interest rate risk, foreignexchange risk, equity and commodity price risks, and credit risk) can be traded in their own right infinancial markets. Examples include futures, swaps, and options.

24

INTERNATIONAL MONETARY FUNDIMF FISCAL TRANSPARENCY CODE

Fiscal aggregates: The key fiscal summary indicators, including on the flow-side total expenditureand total revenue, net lending/net borrowing or overall fiscal balance; and on the stock-side grossand net debt, total assets, total liabilities, and net worth.

Fiscal forecasts: Forecasts of the main fiscal aggregates, as well as the elements underlying them,including specific revenue heads; expenditures by either administrative, functional, or economic
classification; and key assets and liabilities, including gross debt.

Fiscal legislation: Laws related to the formulation of fiscal policy; preparation, approval andexecution of the budget; and/or accounting, reporting, and auditing of fiscal information. They

include fiscal responsibility, organic budget, public financial management, and public accounting
and audit legislation.

Fiscal regime: The combined system of tax and non-tax instruments used to raise government (ormore broadly State) revenue from natural resource extraction activity. It includes royalty and income

tax on profits, and payments to governments under contractual schemes such as production sharing(i.e. state share of profit petroleum) or risk service contracts. The fiscal regime may also include

bonuses, other taxes (e.g., export taxes, import duties, excise duties, and VAT net of refunds), fees,other levies and charges, and in-kind payments. The fiscal regime also includes instruments of stateparticipation because these have fiscal effect on the division of revenues, even where held by acommercially operating state-owned enterprise.

Fiscal reports: Retrospective reports on fiscal developments including in-year and year-end budget

outturn/execution reports, fiscal statistics, and annual financial statements.

Fiscal statistics: Retrospective reports on the government’s financial performance that provide fiscal

data based on international statistical standards such as Government Finance Statistics Manual(2014), or System of National Accounts (1993 or 2008) or European system of National and Regional
Accounts (1995 or 2010).

General government: The general government sector consists of resident institutional units that

fulfill the functions of government as their primary activity. The general government sector includes
all government units of central, state, provincial, regional, and local government, social security

funds, and non-market non-profit institutions controlled by government units (referred to as extrabudgetary funds), as defined by the GFSM2014. General government also includes enterprises

INTERNATIONAL MONETARY FUND 25

IMF FISCAL TRANSPARENCY CODE

legally established as corporations but providing goods and services primarily on a non-market

basis.

Government guarantee: The most common type is a government-guaranteed loan which requires
the government to repay any outstanding amount on the loan in the event of default by a third

party. In some contracts—particularly relating to PPPs—the government may provide a revenue or

demand guarantee that requires it to make up the difference if revenue or demand falls short of anagreed level. Other contracts may include exchange rate or price guarantees.

Independent body: An independent body for effective conduct of auditing or the preparation of
fiscal statistics is one with a sufficiently broad mandate and full professional discretion in the

discharge of its functions, the right and obligation to report on its work, unrestricted access to
information, and the availability of appropriate human, material and monetary resources, allenshrined in the legal framework.

International standards: Internationally recognized standards for (i) government finance statistics,
including Government Finance Statistics Manual (2014), or System of National Accounts (1993 or2008) or European system of National and Regional Accounts (1995 or 2010); and (ii) government
financial statements, (including International Public Sector Accounting Standards (IPSAS) andInternational Financial Reporting Standards (IFRS)) (iv) revenue transparency including the Extractive

Industries Transparency Initiative Standard (EITI), (including the IMF standard template for collecting
data on government revenues from natural resources, consistent with GFSM 2014); (v) corporate

governance, including the OECD Principles on Corporate Governance of State-Owned Enterprises.
In-year fiscal reports: Budget outturn/execution reports and fiscal statistics that are produced onmonthly or quarterly frequency within the financial year but can include full year reports that are
produced shortly after the end of the financial year.

Macroeconomic risks: Risks related to macroeconomic outturns differ from forecasts, such as whenGDP, inflation, unemployment, commodity prices, or exchange rates turn out above or below theforecasts on which the budget is based.

Major audit qualifications: Major audit qualifications include any of the following: (i) disclaimer

audit opinion; (ii) adverse audit opinion; and (iii) any other audit qualification the financial impact ofwhich has been estimated by the auditor to be of the order of one percent of GDP or larger.

26

INTERNATIONAL MONETARY FUNDIMF FISCAL TRANSPARENCY CODE

Major revisions: Revisions to historical fiscal statistics that are large enough to have a macro-critical
impact on the key fiscal aggregates, and in particular, any revision of the order of one percent of
GDP or larger.

Medium term: Three to ten years beyond the current year.
Multi-annual contracts: Contracts between the government and private sector with a term of morethan a year, such as PPPs, long-term leases, and long-term procurement arrangements.

National resource corporation: A state-owned corporation or enterprise in the natural resource

sectors (mining or petroleum) either directly engaged in exploration and production, in commodity
trading, or in managing the state participation.

Natural resources: Non-renewable natural resources such as mineral ores, crude oil and naturalgas.

Natural resource funds: An investment vehicle for the management of revenues from natural

resource extraction (a subset of sovereign wealth funds).

License: Legal instrument issued by government, within the scope of the broader legal framework,
granting rights to carry out exploration and extraction activity within a specified area and time
period.

Long term: The period spanning ten or more years beyond the current year.
Open: A process which is given sufficient publicity and accessible to all qualified potential applicants(i.e. public call for expressions of interest).

Production sharing contracts: Fiscal scheme for petroleum in which production at a surface

delivery point (profit petroleum) is shared between a state entity (the government, or a state-owned

enterprise acting on behalf of the government) and a private contractor, which also recovers
exploration, development and production costs (through cost oil).

Project: Operational activities (in the natural resource sectors) governed by a single contract,

license, lease, concession, or similar legal agreements that form the basis for payment liabilities with

INTERNATIONAL MONETARY FUND 27

IMF FISCAL TRANSPARENCY CODEa government. Agreements with substantially similar terms that are both operationally andgeographically integrated may be treated by the company as a single project.
Public activity: All fiscal activity undertaken by units within the public sector.
Public corporations: Corporations owned or controlled by government units and/or other public
corporations, as defined by the Government Finance Statistics Manual (2014).

Public-private partnerships (PPPs): PPPs are long-term contracts between two units, whereby one
unit acquires or builds an asset or set of assets, operates it for a period, and then hands the asset

over to a second unit. In these arrangements the private sector provides infrastructure assets andservices that have traditionally been provided by the government, such as hospitals, schools, prisons,roads, bridges railways, and water and sanitation plants. Cases where the private operator has some

responsibility for asset management and improvement are described as concessions.

Public sector: The public sector consists of all resident institutional units controlled directly, or
indirectly, by resident government units, that is, all units of the general government sector andresident public corporations (including non-financial and financial public corporations).

Publish: To disseminate information in location(s) and format(s) that ensure that it is widely
available and accessible to the public.

Quasi-fiscal activities: Government operations carried out by institutions other than thegovernment units (such as central banks and other public corporations). Examples include

concessional loans given by the central bank, directed lending by public corporations, andrequirements on public or private corporations to provide services at below-market prices.
Resource corporation: Any corporate entity or company, including national resource corporations,engaging in natural resource exploration, extraction or commodity trading activity.

Resource revenues: All public sector revenue raised from natural resource exploration andextraction activity. This includes all central and subnational government revenue, revenues flowing

to extrabudgetary funds and cashflows to public corporations through state participation, as well as

revenue from the taxation of realized capital gains from transfers of interest in resource rights. Fiscal

payments can be in cash or in kind. Resource revenues also include revenue raised from government
sales of commodity volumes received in kind.
28

INTERNATIONAL MONETARY FUNDIMF FISCAL TRANSPARENCY CODE

Resource rights: Rights to explore for and extract natural resources, typically granted throughlicenses or contracts.

Revenue collecting authorities: A government body responsible for the intake of government

revenue including either or both tax and non-tax revenue. Traditionally the term is used inconnection with a revenue service, revenue agency or taxation authority which is also responsible forregistration, filing, compliance and debt management. Natural resource revenue may be collectedby the tax authorities, natural resource sector ministry or regulator, or the national resourcecompany (e.g., a national oil company).

Revenue instruments: Tax and non-tax instruments used to raise resource revenue. Non-tax

instruments include royalties, state participation, and contractual systems such as productionsharing. Fiscal payments can be in cash or in kind.

Semi-autonomous body: A semi-autonomous body is part of the government sector, but, incomparison to government ministries and departments, enjoys a certain degree of de facto or dejure operational and financial autonomy with regard to staffing, budget management, and internalorganization.

Sovereign wealth fund: Special purpose investment fund or arrangement owned by the general

government. Created by the general government for macroeconomic purposes, sovereign wealthfunds (SWFs) hold, manage, or administer assets to achieve financial objectives, and employ a set ofinvestment strategies which include investing in foreign financial assets. The SWFs are commonly

established out of balance of payments surpluses, official foreign currency operations, the proceeds
of privatizations, fiscal surpluses, and/or receipts resulting from commodity exports.

Specific fiscal risk: A fiscal risk that is not directly related to macroeconomic factors. It is narrower

and arises from specific sources and triggering events, such as the calling of a guarantee, a natural
disaster, or rescue of a bank.

State participation: The equity participation by the State in a natural resource project typically as a
joint venture participation (either incorporated or unincorporated). The state participation can beeither a fully-paid working interest, a carried equity interest, or a free equity participation.

INTERNATIONAL MONETARY FUND 29

IMF FISCAL TRANSPARENCY CODE

Sub-national governments: Sub-national governments include state, provincial, or regional

governments, as well as local governments, as defined in Government Finance Statistics Manual(2014).

Tax expenditure: Tax expenditures are concessions, reliefs, rebates, or exemptions from a “normal”

tax structure that reduce government revenue collections. Because the government policy objectives
could be achieved alternatively through a subsidy or other direct outlays, they are regarded as

equivalent to budget expenditure.

Taxpayer audit: An audit conducted by the revenue authority to provide assurance that a taxpayer
has reported income and deductions in accordance with provisions of the tax legislation.

30

INTERNATIONAL MONETARY FUND