IMF Working Papers

Another Look at Governments’ Balance Sheets: The Role of Nonfinancial Assets

By Elva Bova, Robert Dippelsman, Kara C Rideout, Andrea Schaechter

May 2, 2013

Download PDF

Preview Citation

Format: Chicago

Elva Bova, Robert Dippelsman, Kara C Rideout, and Andrea Schaechter. Another Look at Governments’ Balance Sheets: The Role of Nonfinancial Assets, (USA: International Monetary Fund, 2013) accessed December 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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, this paper looks at the size, composition, and management of state-owned nonfinancial assets across 32 economies, with particular focus on the advanced G-20 economies. We find that 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.

Subject: 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

Publication Details

  • Pages:

    44

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2013/095

  • Stock No:

    WPIEA2013095

  • ISBN:

    9781484315453

  • ISSN:

    1018-5941

You May Also Be Interested In...

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Guinea-Bissau: Seventh Review Under the Extended Credit Facility and Request for Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Guinea-Bissau

December 19, 2024

Benin: Fifth Review under the Extended Fund Facility and the Extended Credit Facility Arrangements, and the Second Review under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Benin

December 19, 2024

Republic of Moldova: Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for modifications of performance criteria, and Second review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Alternative Executive Director for the Republic of Moldova

December 19, 2024