Technical Notes and Manuals

A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates

By Julio Escolano

January 27, 2010

Download PDF

Preview Citation

Format: Chicago

Julio Escolano. A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates, (USA: International Monetary Fund, 2010) accessed November 21, 2024

Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper presents a practical guide to public debt dynamics, fiscal sustainability, and cyclical adjustment of budgetary aggregates. The paper discusses fiscal formulas, which may be of practical use in fiscal analysis. The paper derives, respectively, the formulas for debt dynamics, and cyclical and inflation adjustment of budgetary aggregates. It discusses other relationships for special applications, and some practical implications and usage. The formulas related to debt dynamics are based on the assumption that changes in liabilities are the result of above-the-line budgetary operations.

Subject: Budget planning and preparation, Debt sustainability analysis, Expenditure, External debt, Fiscal policy, Fiscal stance, Interest payments, Public debt, Public financial management (PFM)

Keywords: Balance ratio, Budget balance, Budget planning and preparation, Cyclical adjustment, Cyclically adjusted balance, Debt path, Debt ratio, Debt ratio decline, Fiscal stance, Government budget constraint, Interest payments, Interest rate, Ponzi game, Potential GDP, Public debt dynamics, Target debt ratio, TNM

Publication Details

  • Pages:

    26

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Technical Notes and Manuals No. 2010/002

  • Stock No:

    TNMEA2010002

  • ISBN:

    9781462396955

  • ISSN:

    2075-8669

You May Also Be Interested In...

Guidance Note On The Financing Assurances And Sovereign Arrears Policies And The Fund's Role In Debt Restructurings

November 18, 2024

Burkina Faso: Report on Government Finance Statistics Mission (March 18–29, 2024)

November 18, 2024

Islamic Republic of Mauritania: Technical Assistance Project on Public Debt Projections: Scoping Mission Report

November 15, 2024

Growth Convergence and Public Finances of India and its States

November 15, 2024