Each finance ministry has its own unique set of challenges depending on the country's level of wealth, debt, sovereign risk and financial sophistication. Many have had to take unprecedented steps to contain the financial crisis including stimulus spending, asset purchases and guarantees. These activities in turn have resulted in a transformed mandate for finance ministries globally.
Demonstrating the highest levels of transparency and efficiency is essential for every finance ministry, despite the differences in financial infrastructure that exist across regions.
Financial accountability
Finance ministries are tasked to demonstrate compliance with national financial regulations, but also to increase trust amongst citizens and businesses, and ensure credibility internationally to boost confidence in the country at a macroeconomic level.
Economic oversight
Both finance ministries and central banks have a vital role to play in ensuring the country's economic health and stability during both normal and extreme conditions. This requires detailed, timely access to high quality information, which is particularly challenging in countries with a decentralized approach to fiscal administration, such as parts of Latin America, Asia, Eastern Europe and South Africa. For countries with high deficits but a limited ability to raise revenue, the focus is on promoting sustainable growth and a robust public finance and debt management infrastructure.
Asset & liability management
High levels of debt and huge deficits, together with large acquisitions and other interventions during the crisis have accentuated the need for finance ministries to manage financial assets efficiently and transparently. This is particularly the case for European economies that have been, and continue to be most vulnerable during the crisis.
