IMF Working Papers

Managing Fiscal Risks from State-Owned Enterprises

By Anja Baum, Paulo A Medas, Alberto Soler, Mouhamadou Sy

September 25, 2020

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Anja Baum, Paulo A Medas, Alberto Soler, and Mouhamadou Sy. Managing Fiscal Risks from State-Owned Enterprises, (USA: International Monetary Fund, 2020) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Ensuring that state-owned enterprises (SOEs) are efficient and managed prudently is important for economic and social reasons. It is also crucial to contain fiscal risks and reduce the burden on taxpayers from recurrent and large bailouts. Governments need to develop stronger capacity to monitor and mitigate the risks from SOEs. We present a risk tool to benchmark the performance of SOEs relative to their peers and assess their vulnerabilities, including through stress tests. A strategy to mitigate risks requires the right incentives for managers to perform and for government agencies to conduct effective oversight. Incorporating SOEs in overall fiscal targets would promote greater fiscal discipline and transparency.

Subject: Budget planning and preparation, Contingent liabilities, Economic sectors, Economic sectors, Financial crises, Fiscal risks, Public enterprises, Public financial management (PFM), Public sector

Keywords: Budget planning and preparation, Caribbean, Company c, Company C, Company level, Company's leverage, Contingent liabilities, Electricity company, Europe, Financial support, Fiscal risks, Global, Holding company, Line ministry, Middle East and Central Asia, Negative equity, Oversight unit, Public enterprises, Public sector, Return on assets, Sectoral strategy, SOEs cost, SOEs financials, SOEs manager, State-owned enterprises, Sub-Saharan Africa

Publication Details

  • Pages:

    43

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/213

  • Stock No:

    WPIEA2020213

  • ISBN:

    9781513557502

  • ISSN:

    1018-5941

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