Dimension 14.2. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last three completed fiscal years. CG.
  • Medium term fiscal forecasts.
  • Underlying assumptions and basis of calculation of fiscal forecasts.
  • Evidence that the information is provided as part of budget documentation submitted to the legislature.
  • Annual budget documents.
  • MoF.
  • Records of legislative proceedings.

 

Dimension 14.3. Macrofiscal sensitivity analysis

DIMENSION MEASUREMENT GUIDANCE

14.3:1. This dimension assesses the capacity of governments to develop and publish alternative fiscal scenarios based on plausible unexpected changes in macroeconomic conditions or other external risk factors that have a potential impact on revenue, expenditure, and debt. Such analyses would typically involve an analysis of debt sustainability.

14.3:2. The fiscal forecast scenarios should present fiscal projections and underlying assumptions in

the same format as the approved fiscal forecasts. Scenarios should be based on potential changes to macroeconomic forecasts (e.g., pessimistic or optimistic scenarios) as a result of external risks or other factors (e.g., impact of changes in global growth, commodity prices, exchange rates, etc.). They should be prepared at the same time as the baseline scenario used for fiscal and budget policy processes and reports.

14.3:3. If there are no macroeconomic forecasts, PI14.1 would be rated D and PI-14.3 as well.

Dimension 14.3. Scoring

Scorev Minimum requirements for scores
A The government prepares a range of fiscal forecast scenarios based on alternative macroeconomic assumptions, and these scenarios are published, together with its central forecast
B The government prepares for internal use—a range of fiscal forecast scenarios based on alternative macroeconomic assumptions. The budget documents include discussion of forecast sensitivities.
C The macrofiscal forecasts prepared by the government include a qualitative assessment of the impact of alternative macroeconomic assumptions.
D Performance is less than required for a C score.

Dimension 14.3. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last three completed fiscal years CG.
  • Evidence of alternative fiscal scenarios in the same format as the medium-term fiscal forecasts
  • MoF.

 

Pillar Four: Policy Based Fiscal Strategy and Budgeting