Contingent Liabilities : A Threat to Fiscal Stability

The economic policy note discusses the issue of serious fiscal instability faced by many governments as a result of their contingent liabilities, which are associated with major hidden fiscal risks. Direct liabilities are predictable obligations that will arise in any event, and are the main subject of conventional fiscal analysis. Conversely, contingent liabilities are obligations triggered by a discreet but uncertain event, and are not always accounted for fully. The note further discusses explicit and implicit liabilities of a central government, suggesting ways to reduce fiscal risks for the policy makers.

Bibliographic Details

Main Author:	Polackova, Hana
Language:	English
Published:	World Bank, Washington, DC 1998-11
Subjects:	AUTHORITY, BALANCE SHEETS, BANK BAILOUTS, BANK FAILURES, BUDGET EXPENDITURES, CENTRAL GOVERNMENTS, CONTINGENT LIABILITIES, CROP INSURANCE, DEPOSIT INSURANCE, DISCLOSURE, ECONOMICS, EXCHANGE RATE, FINANCIAL RISKS, FINANCIAL SECTOR, FINANCIAL STABILITY, FINANCIAL SYSTEM, FISCAL, FISCAL POLICY, FISCAL PRESSURES, FISCAL SUSTAINABILITY, FISCAL TRANSPARENCY, FISCAL YEAR, FLOOD INSURANCE, FOREIGN EXCHANGE, GOVERNMENT POLICIES, GOVERNMENT PROGRAMS, HEALTH CARE, HEALTH CARE FINANCING, INFORMATION DISCLOSURE, INSURANCE, MARKET INSTITUTIONS, MINISTRY OF FINANCE, MORAL HAZARD, MORTGAGE LOANS, PENSIONS, POLICY RESEARCH, PRESIDENCY, PRIVATE PENSION FUNDS, PRIVATE SECTOR, PUBLIC AGENCIES, PUBLIC DEBT, PUBLIC FINANCE, PUBLIC FINANCING, PUBLIC INVESTMENTS, PUBLIC RESOURCES, RATING AGENCIES, RESERVE £ ADEQUACY, RISK ASSESSMENT, RISK FACTORS, RISK INSURANCE, RISK MANAGEMENT, RISK PREFERENCE, SOCIAL SECURITY, STATE GUARANTEES, SUBNATIONAL GOVERNMENTS FISCAL PRESSURES, FISCAL MANAGEMENT, CONTINGENT LIABILITY, POLICY REFORM, RISKS, ECONOMIC POLICY,
Online Access:	http://documents.worldbank.org/curated/en/1998/11/438760/contingent-liabilities-threat-fiscal-stability https://hdl.handle.net/10986/11522
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