Debt Sustainability Analysis (FAD/IMF)

Modernizing the framework for fiscal policy and public debt sustainability analysis, prepared by the Fiscal Affairs Department (FAD) published by IMF. “Modernizing the framework for fiscal policy and public debt sustainability analysis (DSA) has become necessary, particularly in light of the recent crisis and rising sustainability concerns in some advanced economies. While recognizing the inherently challenging nature of such analysis, this paper highlights areas where improvements are needed and makes both general and specific proposals on how this could be achieved. DSA could be improved through a greater focus on: 1) Realism of baseline assumptions, 2) Level of public debt as one of the triggers for further analysis, 3) Analysis of fiscal risks, 4) Vulnerabilities associated with the debt profile, 5) Coverage of fiscal balance and public debt.” See: