Government Contingent Liabilities and the Measurement of Fiscal Impact
In: IMF Working Paper, S. 1-38
280 Ergebnisse
Sortierung:
In: IMF Working Paper, S. 1-38
SSRN
Cover -- Title -- Copyright -- Contents -- Figures, Tables, and Boxes -- Figures -- 1 Private Sector Participation in Energy Infrastructure, 1990-2015 -- 2 Private Sector Participation in Infrastructure, 1990-2015 -- 3 Private Sector Participation in Transportation Infrastructure, 1990-2015 -- 4 Contingent Liability Management System for Public-Private Partnerships -- 5 Budgetary Process for Funding Contingent Liabilities that Materialize -- 6 Flowchart for Availing of Unprogrammed Fund to Pay for Contingent Liabilities that Materialize -- 7 Flowchart for Funding and Availing of Contingent Liability Fund to Pay for Contingent Liabilities that Materialize -- Tables -- 1 Build-Operate-Transfer Power Projects -- 2 Government Support Instruments for Public-Private Partnerships -- 3 Four-Way Risk Categories and Examples -- 4 Build-Operate-Transfer Projects by Sector, 2001-2014 -- 5 Values of Contingent Liabilities in Selected Build-Operate-Transfer Projects -- 6 Prudential Ceilings on Contingent Liabilities -- 7 International Experiences in Funding Contingent Liabilities -- Boxes -- Contingent Liability Management in the Philippines-Pre-Asian Financial Crisis Ideas -- Acknowledgments -- Abbreviations -- Abstract -- Introduction -- A. Literature Overview -- B. Problem Definition -- C. Objective -- D. Methodology -- E. Report Structure -- I. Review of Past Experiences with Public-Private Partnership Contingent Liabilities -- A. Power Build-Operate-Transfer Projects -- B. Metropolitan Waterworks and Sewerage System Concessions -- C. Transportation Public-Private Partnerships -- D. Current Situation -- II. Current Institutional Framework for Public-Private Partnership Contingent Liabilities -- A. Definition and Types of Contingent Liabilities -- B. Contingent Liability Management Policy as Stated in Government Documents.
In: IMF Working Paper No. 16/14
SSRN
Given the rapid growth of the public–private partnership program (PPP), the Philippine government has initiated reforms to strengthen the framework for managing contingent liabilities arising from PPP projects. This study shows that major directions requiring further effort include (i) better pricing of government guarantees, (ii) adoption of methodology for quantification of contingent liabilities, (iii) setting prudential limits on PPP contingent liabilities, (iv) development of procedures for payment of materialized contingent liabilities from the national budget's unprogrammed fund, and (v) in the medium term, setting up a contingent liabilities fund financed through budget appropriations and contributions of project sponsors.
BASE
Contingent liabilities create management problems for governments. They have a cost, but judging what the cost is and whether it is worth incurring is difficult. Except in the case of contingent liabilities created by simple guarantees of debt, governments usually can incur contingent liabilities without budgetary approval or recognition in the governments accounts. So governments may prefer contingent liabilities to other obligations. (The uncertainty surrounding contingent liabilities can work differently. It is well known that PPPs create contingent liabilities, and the International Monetary Fund (IMF), the World Bank, and others often warn of the risks. The initial reaction of a cautious Ministry of Finance may be to seek to avoid all contingent liabilities.) Management problems also arise once a government has incurred a contingent liability. Projects need to be monitored to reduce risks if possible. Spending on contingent liabilities must sometimes be forecast, despite the difficulty.
BASE
The report titled 'contingent liabilities: the Colombian experience,' is the first publication on the management of contingent liabilities in Colombia. Published by the Ministry of Finance and Public Credit (MHCP), the report highlights technical and normative efforts and policy reforms on the management of contingent liabilities implemented by the Colombian Government. Policy reforms disclosed in the report pertain to the management of contingent liabilities borne by the Government from four different sources, namely public credit operations, contractual public-private partnerships on infrastructure development, legal actions against the Colombian Government, and contingencies resulting from natural disasters. Importantly, although natural disasters are the second most important source of contingent liabilities faced by the Colombian Government, most formal policy reforms have been directed to the institutionalization of managing the first three sources of contingencies, while legal reforms for the explicit accounting of natural disasters is an ongoing effort in Colombia.
BASE
Local state-owned enterprises (SOEs) working together with local governments can promote economic growth. However, an increase in the implicit contingent liabilities of local governments due to implicit guarantees given to SOEs has a negative effect on economic growth. The classical socialist theories and the economic stability in each financial crisis of China show that the macroeconomic efficiency of SOEs is more important than the microeconomic efficiency, and microeconomic efficiency in neoclassical economic theory cannot reflect the nature of SOEs. It is of great practical and theoretical significance to make a more comprehensive and accurate judgment on the efficiency of SOEs. This paper constructs an index of local governments' implicit contingent liabilities in 31 provinces based on the 488 local SOEs to study the impact of implicit contingent liabilities, and the time period is the year 2007 to the year 2020. Our findings show that an increase in local SOEs' assets suppresses economic fluctuations at the cost of increasing government's implicit contingent debt and has a negative impact on economic growth. Unlike the fiscal influence path of explicit debt, implicit contingent debt restrains local economic growth through financial markets. The deleveraging of local SOEs and improving their efficiency can improve the overall efficiency of local funds and reduce the negative effect of local governments' implicit contingent liabilities on economic growth.
BASE
In: http://hdl.handle.net/11427/4638
Includes bibliographical references. ; The debate around the deductibility of transferred contingent liabilities, when a business is sold as a going concern has been raging for many years with no definitive guidance provided in legislation and limited court decisions on the issue, with the exception of the recent Ackermans Ltd v CSARS ("Acermans case") judgment and BCR 029 issued by SARS.
BASE
In: IMF Working Paper, S. 1-18
SSRN
SSRN
In: The IUP Journal of Financial Risk Management, Vol. XVI, No. 3, September 2019, pp. 26-38
SSRN
In: Thammasat Economic Journal, Band 31(1)
SSRN
In: http://hdl.handle.net/11427/30962
The income tax consequences that flow from the assumption of contingent liabilities as part of the sale of a going concern is a contentious matter that continues to frustrate sellers and purchasers. The challenges faced by sellers and purchasers include inherent mismatches between the objects of accounting practice and that of income tax legislation; inconsistent policy formulation by National Treasury (Treasury) and the South African Revenue Service (SARS), and income tax legislation and case law that do not adequately recognise the economic effect of these transactions for sellers and purchasers. These, and other, challenges are highlighted and unpacked in this study by evaluating accounting standards, the Income Tax Act 58 of 1962 (ITA), case law and publications by SARS. In recent years there have been increasing calls for Treasury and Parliament to intervene by means of legislative reforms and for SARS to issue guidelines, in order to provide clarity regarding the income tax consequences for sellers and purchasers. New provisions and amendments to the ITA were proposed in the Draft Taxation Laws Amendment Bill of 2011 (draft Bill). The proposed legislative reforms were however withdrawn before the Taxation Laws Amendment Bill of 2011 was introduced in Parliament. Interpretation Note 94: Contingent Liabilities Assumed in the Acquisition of a Going Concern (IN94) was published by SARS during the latter part of 2016, with the aim of setting out principles which can serve as an interpretative guide for the determination of the income tax consequences for sellers and purchasers. This study investigates whether IN94 adequately addresses the challenges highlighted in this dissertation. The Davis Tax Committee, in its Report on the Efficiency of South Africa's Corporate Income Tax System, states that while SARS has attempted to address some of the shortcomings in respect of the taxation of contingent liabilities through interpretation notes and rulings, this is unsatisfactory as it is the legislation which requires amendment in order to address the shortcomings. In the final part of this study, the legislative reforms proposed in the draft Bill iv are evaluated, and the case is made for the reconsideration of comprehensive legislative reforms in order to create more certainty for sellers and purchasers.
BASE
In: Mergers, Acquisitions & Disposals Journal Vol. 1 Special Issue 2. Dec 2020
SSRN