What is the Sovereign Fiscal Responsibility Index?
The Sovereign Fiscal Responsibility Index, created by the Comeback America Initiative in partnership with Stanford University graduate students, is a measurement of the country's fiscal health and sustainability. Think of it as a "Fiscal Fitness Index."
How is the SFRI measured?
We calculate a country’s overall ranking based on three factors – fiscal space, fiscal path, and fiscal governance. Here’s what those terms mean:
Fiscal space represents the amount of additional debt, as a percentage of GDP, a country could theoretically issue before a fiscal crisis is imminent.
Fiscal path is a projection of the country’s future level of debt.
Fiscal governance is a value based on a country’s fiscal rules, fiscal transparency, and fiscal enforceability.
Click here for more detailed information on the SFRI and how it’s calculated.
What does the United States’ SFRI tell us about its fiscal health?
According to our analysis of 34 countries around the world, the United States ranks a disappointing 28th – far behind countries like Australia (#1), China (#5), and Brazil (#10). Its rank is far closer to that of countries that have recently gone through severe debt and fiscal crises, including Ireland (#30) and Greece (#34).
What can the United States do to increase its fiscal fitness?
Our analysis shows that if the United States follows the recommendations of the National Commission on Fiscal Responsibility and Reform or a fiscal plan that has the same bottom line effect, our ranking would jump from 28th to 8th.
What are the recommendations of the NCFRR?
The NCFRR’s plan to put the country back on its fiscal tracks includes spending cuts, comprehensive tax reform, health care cost containment, and social security reform. Click here to find out more details about its proposal.
Click here for more graphics about our fiscal situation.