Title: Fiscal adjustment and contingent government liabilities
Description: Governments' contingent liabilities increase fiscal vulnerability, but are omitted in traditional measures of the current deficit.  In the Czech Republic this omission may mean that fiscal adjustment has been overstated by 3 to 4 percent of annual GDP, with future budgets having to pay for past guarantees.  The stock of existing contingent liabilities in Macedonia could add 2 to 4 percent of GDP to that country's future deficits.
Subjects: Budget deficits, Contingent liabilities (Accounting), Fiscal policy, Public Finance
Places: Czech Republic, Macedonia