Year: 2026
Type: article
Abstract: Fiscal risk is the situation when the actual fiscal outputs differ considerably from budgeted or other fiscal projections. There can be various reasons for these deviations. For example, recent war between America, Israel and Iran may also act as a potential source of fiscal risk as it will put additional burden on governments public spendings for reconstruction and development. According to IMF report failure to identify, measure, disclose and prepare for such risks has caused additional government obligations, larger public debts and occasionally refinancing difficulties and crises. Considering those facts this study is an attempt to study the concept and types of fiscal risk, to analyze the best practices adopted by countries to manage fiscal risk and finally to provide some recommendations for better policy making in managing fiscal risk. For this purpose, secondary data was collected from working papers of IMF and world bank and research papers conducted on this issue. The study concludes that governments should make efforts to manage and control fiscal risk in order to foster fiscal discipline.
Authors: Ms. Ekta Masih, Dr. D.K. Nema
Institution: Dr. Hari Singh Gour University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7202097008