Guidance on quasi-fiscal expenditures (6.2)

Where state participation in the extractive industries gives rise to material revenue payments, implementing countries must include disclosures from state-owned enterprises on their quasi-fiscal expenditures.

Quasi-fiscal expenditures include arrangements whereby SOE(s) undertake public social expenditure such as payments for social services, public infrastructure, fuel subsidies and national debt servicing, etc. outside of the national budgetary process. 

Ways to find if there are any quasi-fiscal expenditures

  • At scoping phase, identify if the SOE publishes a budget, annual report, financial statements. Are there any financial transactions that fall under quasi-fiscal expenditures?
  • Does the SOE have a department or foundation to conduct social activities / investments on behalf of the state? Those could qualify as quasi-fiscal expenditures.

Country Validations where quasi-fiscal expenditure are relevant

Examples from countries


The 2014 PWC audit of NNPC oil sales and the 2012 Presidential Petroleum Revenue Task Force had identified a large number of quasi-fiscal expenditures undertaken by NNPC including loans to foreign governments, payment for a presidential helicopter and payments for World Cup-related travels. 

Read more in initial assessment of Nigeria's 2016 Validation (see here, pp. 170)


The country published a report in 2017 to examine the state of affairs of quasi-fiscal expenditure as part of the corrective actions of the 2016 Validation. Access the report here (in Russian).