The proposed two-volume document will provide detailed guidance on implementation of principles and practices mentioned under IMF's new Fiscal Transparency Code (FTC).

According to a recent policy paper issued by IMF as an update on its Fiscal Transparency Initiative (FTI), "The FTC has a four-pillar structure: (i) Pillar I on fiscal reporting calls for fiscal statistics and accounts to provide relevant, comprehensive, timely, and reliable information on the government's financial position and performance; (ii) Pillar II on fiscal forecasting and budgeting emphasizes the need for budget documentation to provide a clear statement of the government's fiscal and policy objectives, and timely and credible forecasts for the evolution of public finances; (iii) Pillar III on fiscal risk analysis and management stresses the importance of comprehensive disclosure, analysis, and control of the key risks to the public finances; and (iv) Pillar IV on resource revenue management addresses transparency issues related to natural resource endowments and revenues. Work on the first three Pillars has been completed, with Pillar IV scheduled for completion later this year."

FTM's Volume I will cover Pillars I, II, and III. Volume II will focus on Pillar IV and integrate the previously separate Guide on Resource Revenue Transparency.

The Policy Paper says that the new FTC differs from the IMF's 2007 Code in a number of respects. In general, it addresses the weaknesses of the 2007 Code (as brought out in the 2012 paper) and focuses on information needed for good fiscal management and decision-making.

The revised FTC, for instance, focuses on outputs rather than processes. The 2007 Code had a procedural focus, centered on four main areas: (i) clarity of roles and responsibilities; (ii) open budget processes; (iii) public availability of information; and (iv) assurances of integrity. This diverted attention away from analysis of the quality and adequacy of reported outputs. The FTC puts greater emphasis on the quality of published information as a more objective basis for evaluating the degree of effective fiscal transparency.

The new Code also takes account of different levels of country capacity. The 2007 Code provided a single best practice standard for each principle. This made no allowance for different levels of institutional capacity or economic development. In contrast, the FTC differentiates between basic, good, and advanced practice. This allows countries to develop a sequenced path for reform by providing them with a clear set of milestones toward full compliance with international standards. The new approach also facilitates cross-country benchmarking.

The new FTC also places greater emphasis on fiscal risk. The 2007 Code devoted relatively little attention to disclosure and management of fiscal risks. The FTC devotes a full pillar (with 12 principles) to the analysis and management of fiscal risks that are likely to be relevant to all countries.