Fiscal Analysis of Resource Industries (FARI)
Publication date:2 015
Publication type:Guide Toolkit Guidelines Training
Publication URL:Go to resource
Negotiation stage:2. Pre-Negotiation 3. Contract Negotiation
Sector:Extractive Industries Investment Mining Oil & Gas
Proper evaluation of fiscal regimes for extractive industries (EI) requires economic and financial analysis at the project level. This website introduces key concepts and methodology used by the Fiscal Affairs Department (FAD) in its fiscal analysis of resource industries (FARI) framework. FARI is primarily used in advisory work by FAD on fiscal regime design. In parallel to that, FARI has also been used for revenue forecasting, to analyze revenue management issues (including quantification of fiscal rules), and to better integrate the EI sector in the country macroeconomic frameworks. Looking forward, the model presents a useful tool for revenue administration practitioners, allowing them to compare actual, realized revenues with model results in tax gap analysis.