Monitoring Fiscal Risks in the National Economy
Monitoring Fiscal Risks in the National Economy

Summary/Abstract: Due to the materialization of various types of fiscal risks over the past years, Serbia has begun institutionalizing and developing fiscal risk monitoring. The lack of systematic monitoring of fiscal risks in previous years has led to difficulties in resource planning and poses a risk of unexpected budget expenditures, which distorts resource use and leads to suboptimal spending and compromised results and targets. Fiscal risks are short- and medium-term budget, financial or other reports or projections of public finances. The paper systematically presents the fiscal risks of each national economy with an emphasis on the World Bank project aimed at improving the monitoring of fiscal risks in Serbia. The paper presents four methodologies for monitoring different types of fiscal risks as well as the structure of some of these risks in Serbia. The paper presents a quantitative monitoring of fiscal risks, which is still developing in Serbia, in the context of the crisis and government borrowing. The paper points out the various fiscal risks that affect the budget of the national economy, as well as ways to monitor and reduce fiscal risks.

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