Template-Type: ReDIF-Article 1.0
Author-Name: Igor V. Belyakov
Author-Email: igor.belyakov@eeg.ru
Author-Workplace-Name: Economic Expert Group, Moscow 109012, Russia; Financial Research Institute, Moscow 127006, Russia
Title: Monitoring and Analysis of Contingent Budget Liabilities to Financial System
Abstract: The last global financial crisis has demonstrated that when contingent budget liabilities risks materialize, the resulted budget losses can be huge even in advanced economies. Thus, the importance of the topic raised due to the need to mitigate these risks. On the other hand, monitoring and analysis of contingent budget liabilities are necessary for reliability of budget forecast, which is the basis for the future budget policy. The recent surveys of the OECD (2014) and the IMF (2016) have revealed that monitoring and analysis of the budget risks of contingent liabilities generally are not well-organized in most of countries. Nevertheless, it is possible to formulate several verified recommendations and point out some of the best practices in this field. These include regular and comprehensive reporting on budget risks, application of stress-testing and probability approach, and also calculation of quantitative indicators that measure implicit budget liabilities. As an illustration, two of such
indicators, based on the Russian data for 2012–2016, are calculated and considered in the article.
Classification-JEL: H63, G12, G15
Keywords: budget risks, contingent liabilities, financial system, banking crisis
Journal: Finansovyj žhurnal — Financial Journal
Pages: 71-84
Issue: 4
Year: 2017
Month: August
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2017/4/articles_2017_4/fm_2017_4_06.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:170406:p:71-84