OECD Accruals Symposium Fiscal Sustainability Tom Allen FASAB
OECD Accruals Symposium Fiscal Sustainability Tom Allen FASAB Chairman 1
Fiscal Sustainability Reporting o Purpose n Provide information to help readers determine whether future budgetary resources will likely be sufficient to sustain public services and to meet obligations as they come due. n Enhance understanding of long-term fiscal issues 2
Fiscal Sustainability Reporting o Approach n Fiscal Sustainability Reporting Task Force o Technical knowledge and expertise in communicating information o Current Proposals n Long-term projections o Present values of receipts and outlays for major programs, such as Social Security and Medicare, and all other o Present values of receipts and outlays also as a percent of present value of GDP o Narrative discussion and graphs o Consistent time horizons for all components of report n Summary Display with net present value as the “bottom line” – fiscal imbalance 3
Fiscal Sustainability Reporting o Issues o What time horizon should be used for projections presented in graphics and summary display? n n n Finite Infinite Both finite and infinite o What and how information should be displayed? n n Time horizon Appropriate level of disaggregation of inflows and outflows What ratios are needed What narrative and graphics are needed o Communicate as basic or RSI within whole of government report? 4
- Slides: 4