Six reasons why fiscal councils can help create sustainable public finance in the post-pandemic world

Creating sustainable finance in a post coronavirus world. Graphic: Shutterstock
Fiscal discipline is critical for a resilient recovery in a post-COVID world , especially in developing countries. 

Public Expenditure and Financial Accountability (PEFA), the global framework for assessing Public Financial Management (PFM) performance, emphasizes the importance of macroeconomic forecasts and fiscal policies as the foundation for sustainable public finance.

Successive PEFA assessments in several developing countries, even before the pandemic, indicated weaknesses in policy based budgetary processes. COVID-19 exacerbated this situation with unprecedented increase in government debt, fall in revenues and higher fiscal spending by governments.