IMF Working Papers

Managing Fiscal Risks from State-Owned Enterprises

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

September 25, 2020

Download PDF

Preview Citation

Format: Chicago

Anja Baum, Paulo A Medas, Alberto Soler, and Mouhamadou Sy. Managing Fiscal Risks from State-Owned Enterprises, (USA: International Monetary Fund, 2020) accessed November 8, 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

Supplemental Resources

You May Also Be Interested In...

The Federal Democratic Republic of Ethiopia: First Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Federal Democratic Republic of Ethiopia

November 4, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024

Grenada: Technical Assistance Report-Systemic Risk Monitoring

November 1, 2024

Colombia: Technical Assistance Report-Scoping Mission to Develop Macroeconomic Forecasting Capacity at the Autonomous Committee for the Fiscal Rule (CARF)

November 1, 2024