16 July 2013

IMF publishes new Fiscal Transparency Assessment for Ireland

This report constitutes a pilot of a new IMF instrument for evaluating countries' fiscal transparency practices, based on a revised draft of the IMF's Fiscal Transparency Code (FTC).

The report found that, following a number of significant reforms in recent years, Ireland is approaching best practice in fiscal reporting and forecasting and meets the basic requirements for fiscal risk disclosure under the revised draft FTC which has since been released for public consultation and is due to be finalised before the end of the year. The report also noted the Irish government’s ambitious plans for further improving the timeliness, quality, and comprehensiveness of its budgets, statistics and accounts.

The assessment also highlighted that fiscal disclosure in Ireland remains somewhat fragmented and diffuse. The report therefore recommends a series of actions over five years to:

(i) expand the institutional coverage of budgets, statistics, and accounts;

(ii) recognise all assets, liabilities, and associated fiscal flows in fiscal reports;

(iii) modernise and harmonise accounting standards across the public sector;

(iv) accelerate the timetable for submission and approval of the annual budget and financial statements;

and (v) improve the analysis forecast changes, long-term trends, and fiscal risks.

By consolidating readily available information into a more comprehensive set of summary fiscal documents, these reforms would put Ireland at the forefront of fiscal transparency practice within a reasonable timeframe and relatively modest additional cost.

Full FTA

Full press release

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Ahead of the latest review mission, Finance Minister Michael Noonan said that he wanted to engage seriously with the troika about exit strategies and accessing cheap funding "so to ensure that when we go back into the markets in a continuous way in the autumn that we're back to stay and that we get money at low interest rates", Mr Noonan said. "I'll be asking what ideas they have and where they might assist us in that."

However, another official said it was too early to discuss, in detail, strategies for exiting the bailout at this point. "There's not much point in getting into exit strategies now when the world could be a very different place in October and November."

 

© International Monetary Fund