Transcript OECD Accruals Symposium Fiscal Sustainability Tom Allen FASAB

OECD Accruals Symposium
Fiscal Sustainability
Tom Allen
FASAB Chairman
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Fiscal Sustainability Reporting
 Purpose
 Provide information to help readers
determine whether future budgetary
resources will likely be sufficient to
sustain public services and to meet
obligations as they come due.
 Enhance understanding of long-term
fiscal issues
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Fiscal Sustainability Reporting
 Approach
 Fiscal Sustainability Reporting Task Force
 Technical knowledge and expertise in communicating
information
 Current Proposals
 Long-term projections
 Present values of receipts and outlays for major
programs, such as Social Security and Medicare, and
all other
 Present values of receipts and outlays also as a percent
of present value of GDP
 Narrative discussion and graphs
 Consistent time horizons for all components of report
 Summary Display with net present value as the
“bottom line” – fiscal imbalance
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Fiscal Sustainability Reporting
 Issues
 What time horizon should be used for projections
presented in graphics and summary display?
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Finite
Infinite
Both finite and infinite
 What and how information should be displayed?
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Time horizon
Appropriate level of disaggregation of inflows and
outflows
What ratios are needed
What narrative and graphics are needed
 Communicate as basic or RSI within whole of
government report?
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