PI-15. Fiscal strategy
Description
This indicator provides an analysis of the capacity to develop and implement a clear fiscal strategy. It also measures the ability to develop and assess the fiscal impact of revenue and expenditure policy proposals that support the achievement of the government’s fiscal goals. It contains three dimensions and uses the M2 (AV) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
15.1. Fiscal impact of policy proposals |
|
| A | The government prepares estimates of the fiscal impact of all proposed changes in revenue and expenditure policy for the budget year and the following two fiscal years, which are submitted to the legislature. |
| B | The government prepares estimates of the fiscal impact of all proposed changes in revenue and expenditure policy for the budget year and the following two fiscal years. |
| C | The government prepares estimates of the fiscal impact of all proposed changes in revenue and expenditure policy for the budget year. |
| D | Performance is less than required for a C score. |
15.2. Fiscal strategy adoption |
|
| A | The government has adopted, submitted to the legislature, and published a current fiscal strategy that includes explicit time-based quantitative fiscal goals and targets together with qualitative objectives for at least the budget year and the following two fiscal years. |
| B | The government has adopted and submitted to the legislature a current fiscal strategy that includes quantitative or qualitative fiscal objectives for at least the budget year and the following two fiscal years. |
| C | The government has prepared for its internal use a current fiscal strategy that includes qualitative objectives for fiscal policy. |
| D | Performance is less than required for a C score. |
15.3. Reporting on fiscal outcomes |
|
| A | The government has submitted to the legislature and published with the annual budget a report that describes progress made against its fiscal strategy and provides an explanation of the reasons for any deviation from the objectives and targets set. The report also sets out actions planned by the government to address any deviations, as prescribed in legislation. |
| B | The government has submitted to the legislature along with the annual budget a report that describes progress made against its fiscal strategy and provides an explanation of the reasons for any deviation from the objectives and targets set. |
| C | The government prepares an internal report on the progress made against its fiscal strategy. Such a report has been prepared for at least the last completed fiscal year. |
| D | Performance is less than required for a C score. |
