Managing and Controlling Extrabudgetary Funds

This article addresses issues relating to the establishment and financial management of extrabudgetary funds (EBFs), a large group of government entities and accounts. The article develops a typology of EBFs and argues that they are frequently created because of budget system failures and political economy factors. The article recommends that data on EBFs be consolidated within a unified system of fiscal reporting and proposes an analytical framework that governments might use to evaluate the effectiveness and utility of their EBFs.