Fiscal Transparency in Times of Emergency Response: Reflections for times of Covid-19

March 19, 2020/in Publish /by Lorena Rivero Del Paso

The health emergency we are experiencing at the beginning of 2020 is certainly not the first or last one the world will see. Yet, Covid-19 pushes us to reflect on the preparedness of our fiscal transparency instruments to account for public finance adjustments, as well as to provide useful information in a timely manner—to both government agencies for efficient coordination and decision-making, and the public for policy implementation and accountability. Governments are being faced with the need to make rapid decisions1 regarding different aspects of public finances, some even announcing what is being called a “blank check” to combat Coronavirus and its economic effects2. Generally speaking, these measures target emergency spending to prevent, detect, control, treat, and contain the virus, countercyclical actions to reactivate the economy and support affected people and sectors, and financing needs to ensure liquidity and cash requirements during the emergency and for the stimulus measures3.

While transparency expectations for risks management and contingencies are part of international standards4 and particular attention has also been given in post-disaster attention5, fiscal transparency in emergency situations is certainly intricate. Crisis response interactions generate complexity and confusion, which are exacerbated by fluid, chaotic processes governed by special rules, which often override ordinary processes and timings that may otherwise be well normed and documented. Therefore, specific data, presentation, disaggregation, and timeliness will require focalized and proactive publication measures that respond to the characteristics of the emergency. Gathering and publishing -quality and timely- information of the public financial measures taken and its implications is essential to mitigate the risks that can complicate internal and external monitoring and can be a culprit for mismanagement, corruption, and unforeseen fiscal risks.

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Source: www.fiscaltransparency.net – 19.03.2020