January 16, 2015

On January 14, the Secretary of State released the FY 2014 Fiscal Transparency Report.  The Report assesses whether governments that receive U.S. assistance meet minimum requirements of fiscal transparency.  The Department’s assessments evaluate the substantial completeness, reliability, and public availability of budget documents, as well as the transparency of natural resource extraction contracting and license procedures.  The Report is required by Section 7031(b) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2014.  The Report examines governments receiving bilateral allocations of assistance under the Act.  The Report can be found on the Department’s website at http://www.state.gov/e/eb/ifd/oma/.

Fiscal transparency is a critical element of effective public financial management, helps in building market confidence, and sets the stage for economic sustainability.  Transparency also provides a window into government budgets for citizens of any country, helping them to hold their leadership accountable.

Reviews of the fiscal transparency of governments that receive U.S. assistance help to ensure that U.S. taxpayer money is used appropriately and to sustain a dialogue with governments to improve their fiscal performance, leading to greater macroeconomic stability and better development outcomes.