Training Course on Fiscal Deficit and Public Debt Management

Training Course on Fiscal Deficit and Public Debt Management

Introduction

Effective fiscal deficit control and public debt management are at the heart of sustainable economic growth and macroeconomic stability. In an era of increasing global debt levels, rising interest rates, and fiscal pressure, it is crucial for professionals in the public and financial sectors to understand the dynamics of sovereign debt, budget deficit control, and fiscal policy optimization. This intensive course equips participants with the tools and analytical skills required to assess and manage public debt effectively.

Training Course on Fiscal Deficit and Public Debt Management dives deep into the interlinkages between fiscal responsibility, government borrowing, and debt sustainability frameworks. Participants will explore real-world case studies, leverage international best practices, and learn from industry experts on topics like medium-term debt strategy (MTDS), fiscal risk analysis, and the role of international financial institutions (IFIs). This course enables professionals to make informed decisions that foster economic resilience, fiscal prudence, and public sector transparency.

Whether you're working in a finance ministry, treasury, central bank, or audit institution, this course offers practical guidance and strategic insight into national debt management, fiscal forecasting, and budgetary discipline. Enroll today to become a key player in strengthening your country's fiscal frameworks and navigating debt in a volatile global economy.

Course Duration

10 days.

Course Objectives

1. Understand the macroeconomic impact of fiscal deficits and debt accumulation.
2. Analyze key indicators for fiscal health and debt sustainability.
3. Explore the principles and implementation of fiscal rules and frameworks.
4. Master the formulation of a Medium-Term Debt Strategy (MTDS).
5. Evaluate the role of domestic vs. external debt financing.
6. Conduct debt sustainability analysis (DSA) using international methodologies.
7. Examine the relationship between monetary policy and public debt.
8. Identify sources of fiscal risk and contingent liabilities.
9. Develop strategies for effective debt issuance and borrowing plans.
10. Understand the function of credit rating agencies in debt management.
11. Explore debt restructuring options and crisis resolution techniques.
12. Leverage tools for fiscal transparency and accountability.
13. Strengthen capacity in fiscal forecasting and budgeting processes.

 

Organizational Benefits

• Enhanced fiscal policy planning and execution capacity.
• Improved public financial management (PFM) frameworks.
• Reduced risk of debt distress and fiscal instability.
• Strengthened alignment with international fiscal reporting standards.
• Empowered teams to make data-driven fiscal decisions.
• Increased efficiency in debt portfolio management.
• Boosted institutional reputation for fiscal responsibility.
• Strengthened compliance with IMF and World Bank debt strategies.

 

Target Participants

1. Policy makers and public sector officials
2. Ministry of Finance professionals
3. Debt management office (DMO) staff
4. Central bank economists
5. Treasury and budget officers
6. Public finance auditors
7. International development agencies
8. Economic researchers and analysts

 

Course Outline

Module 1: Fundamentals of Fiscal Policy

• Definition and objectives of fiscal policy
• Types of fiscal deficits
• Fiscal multipliers and their impact
• Role of fiscal policy in economic cycles
• Fiscal consolidation vs. fiscal stimulus

Module 2: Introduction to Public Debt

• Classifications of public debt
• Internal vs. external debt
• Cost and risk characteristics
• Debt burden indicators
• Causes of public debt accumulation

Module 3: Debt Sustainability Analysis (DSA)

• Overview of IMF/World Bank DSA frameworks
• Interpreting debt ratios
• Tools for DSA modeling
• Stress testing and scenarios
• Country case studies

Module 4: Medium-Term Debt Strategy (MTDS)

• MTDS principles and guidelines
• Developing a borrowing plan
• Risk management in MTDS
• Debt portfolio analysis
• Aligning MTDS with fiscal policy

Module 5: Fiscal Rules and Responsibility Frameworks

• Types of fiscal rules
• Institutional arrangements for enforcement
• Fiscal responsibility laws
• Benefits and challenges
• International examples

Module 6: Budget Deficit and Economic Stability

• Linkages between deficits and growth
• Primary vs. overall deficit
• Financing fiscal deficits
• Impact on inflation and interest rates
• Fiscal sustainability thresholds

Module 7: Public Financial Management (PFM) Systems

• Overview of PFM cycles
• Budget preparation and execution
• Cash and debt management integration
• Public investment management
• Institutional reforms

Module 8: Domestic Debt Management

• Instruments and issuance strategies
• Debt auctions and markets
• Managing rollover risks
• Role of local investors
• Domestic debt reporting

Module 9: External Debt Management

• Bilateral and multilateral financing
• Concessional vs. non-concessional loans
• Currency and interest rate risks
• External debt ceilings
• Coordination with development partners

Module 10: Fiscal Forecasting and Scenario Analysis

• Forecasting methodologies
• Revenue and expenditure projections
• Uncertainty and sensitivity analysis
• Scenario building techniques
• Tools for macro-fiscal modeling

Module 11: Fiscal Risk Management

• Sources of fiscal risk
• Guarantees and SOE liabilities
• Natural disasters and pandemics
• Risk registers and dashboards
• Mitigation strategies

Module 12: Debt Reporting and Transparency

• Key reporting templates
• Fiscal disclosure requirements
• Open government principles
• Debt audit practices
• Platforms for public access

Module 13: Credit Ratings and Investor Relations

• Role of credit rating agencies
• Sovereign rating methodologies
• Investor communication strategies
• Managing reputational risk
• Market perception and pricing

Module 14: Debt Restructuring and Crisis Management

• Triggers for debt restructuring
• Restructuring mechanisms
• Role of IMF/Paris Club
• Legal and institutional frameworks
• Post-crisis recovery

Module 15: Emerging Trends and Innovations in Debt Management