Another Look at Governments’ Balance Sheets: The Role of Nonfinancial Assets
IMF Working Papers, May 2, 2013
Source details
- Canonical URL
- Another Look at Governments’ Balance Sheets: The Role of Nonfinancial Assets
Other formats
Bibliographic details
- Authors: Elva Bova, Robert Dippelsman, Kara C Rideout, Andrea Schaechter
- Published: May 2, 2013
- Series: IMF Working Papers
Summary
- When discussing debt reduction strategies, little attention has been given to the role of governments’ nonfinancial assets; this is in part because data are scarce.
- Drawing on various data sources, the paper examines the size, composition, and management of state-owned nonfinancial assets across 32 economies, with particular focus on the advanced G-20 economies.
- Reported nonfinancial assets comprise mostly structures (such as roads and buildings) and,when valued, land.
- These assets have increased over time, mostly due to higher property and commodity prices, and are, in large part, owned by subnational governments.
- Many countries have launched reforms with a view to streamlining public administrations, but receipts and savings have been rather small so far.
- Governments tend to consider relatively small sets of assets to be disposable, though preferences could change in the future.
- A potential source for future revenues could be greater reliance on user charges, such as road tolls.
- In most cases, a first step for more effective asset management has to be the expansion and improvement of data compilation.
Key findings
- Coverage and composition:
- Sample covers 32 economies, with particular focus on the advanced G-20 economies.
- Reported nonfinancial assets are dominated by structures (such as roads and buildings) and,when valued, land.
- Trends and drivers:
- Nonfinancial assets have increased over time, largely driven by higher property and commodity prices.
- Ownership and governance:
- A large share of nonfinancial assets is owned by subnational governments.
- Governments generally identify relatively small subsets of assets as disposable.
- Fiscal outcomes from reforms:
- Many countries have initiated reforms aimed at streamlining public administrations.
- Receipts and savings from asset-related reforms have been rather small to date.
- Revenue opportunities:
- Greater reliance on user charges (for example, road tolls) is identified as a potential source of future revenues.
- Data limitations:
- Scarcity and weakness of data are major constraints.
- Expansion and improvement of data compilation are often the necessary first step for more effective asset management.
Policy implications and recommendations
- Prioritize the expansion and improvement of data compilation on nonfinancial assets to support better asset management and policy decisions.
- Consider reforms to public administration and asset management frameworks, recognizing that past reforms have yielded limited receipts and savings.
- Reassess the set of assets considered disposable as fiscal pressures or policy preferences change over time.
- Explore user-charge mechanisms (for example, road tolls) as potential revenue sources, while accounting for distributional and feasibility considerations.
Publication and metadata
- Authors: Elva Bova, Robert Dippelsman, Kara C Rideout, Andrea Schaechter
- Date: May 2, 2013
- Pages: 44
- Volume: 2013
- Issue: 095
- Series: Working Paper No. 2013/095
- Stock No: WPIEA2013095
- ISBN: 9781484315453
- ISSN: 1018-5941
- Subject keywords: Asset and liability management; Asset valuation; Economic and financial statistics; Financial statements; Government finance statistics; Housing; National accounts; Public financial management (PFM)
- Keywords: Asset valuation, balance sheet, debt sustainability, Financial statements, fiscal policy, Fiscal risk, fixed capital, government asset, Government finance statistics, government property, government statistics, Housing, market value, national wealth, nonfinancial asset asset coverage, nonfinancial asset balance, nonfinancial asset value, nonfinancial assets ownership, replacement cost, subsoil assets, U.K. nonfinancial assets, WP
Source: Another Look at Governments’ Balance Sheets: The Role of Nonfinancial Assets; Elva Bova, Robert Dippelsman, Kara C Rideout, and Andrea Schaechter. IMF Working Papers 2013, 095 (2013), accessed 9/14/2026.