Polackova, Hana2012-08-132012-08-131998-11https://hdl.handle.net/10986/11522The economic policy note discusses the issue of serious fiscal instability faced by many governments as a result of their contingent liabilities, which are associated with major hidden fiscal risks. Direct liabilities are predictable obligations that will arise in any event, and are the main subject of conventional fiscal analysis. Conversely, contingent liabilities are obligations triggered by a discreet but uncertain event, and are not always accounted for fully. The note further discusses explicit and implicit liabilities of a central government, suggesting ways to reduce fiscal risks for the policy makers.CC BY 3.0 IGOAUTHORITYBALANCE SHEETSBANK BAILOUTSBANK FAILURESBUDGET EXPENDITURESCENTRAL GOVERNMENTSCONTINGENT LIABILITIESCROP INSURANCEDEPOSIT INSURANCEDISCLOSUREECONOMICSEXCHANGE RATEFINANCIAL RISKSFINANCIAL SECTORFINANCIAL STABILITYFINANCIAL SYSTEMFISCALFISCAL POLICYFISCAL PRESSURESFISCAL SUSTAINABILITYFISCAL TRANSPARENCYFISCAL YEARFLOOD INSURANCEFOREIGN EXCHANGEGOVERNMENT POLICIESGOVERNMENT PROGRAMSHEALTH CAREHEALTH CARE FINANCINGINFORMATION DISCLOSUREINSURANCEMARKET INSTITUTIONSMINISTRY OF FINANCEMORAL HAZARDMORTGAGE LOANSPENSIONSPOLICY RESEARCHPRESIDENCYPRIVATE PENSION FUNDSPRIVATE SECTORPUBLIC AGENCIESPUBLIC DEBTPUBLIC FINANCEPUBLIC FINANCINGPUBLIC INVESTMENTSPUBLIC RESOURCESRATING AGENCIESRESERVE £ ADEQUACYRISK ASSESSMENTRISK FACTORSRISK INSURANCERISK MANAGEMENTRISK PREFERENCESOCIAL SECURITYSTATE GUARANTEESSUBNATIONAL GOVERNMENTS FISCAL PRESSURESFISCAL MANAGEMENTCONTINGENT LIABILITYFISCAL SUSTAINABILITYPOLICY REFORMRISKSECONOMIC POLICYWorld Bank10.1596/11522