Fiscal Transition in Countries of the Former Soviet Union: An Interim Assessment

Author/Editor:

Jeffrey M. Davis ; A. Cheasty

Publication Date:

June 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper reviews the uneven record of fiscal performance in the states of the former Soviet Union since independence. Deficits have come down rapidly, an important contribution to stabilization. Given, however, the unexpectedly severe revenue decline and limited financing, the stabilization was reached by sharp cuts in expenditure. The cuts were abrupt and not focused on transition goals, and the instruments used vitiated normal budgetary processes. Hence, benchmarks of fiscal success other than stabilization are elusive. Government intervention and subsidies remain important, social spending is inefficient, and there is little evidence in the budget of restructuring.

Series:

Working Paper No. 1996/061

Subject:

Arrears Budget planning and preparation Currencies Economic sectors Expenditure External debt Privatization Public financial management (PFM) Social assistance spending

English

Publication Date:

June 1, 1996

ISBN/ISSN:

9781451848120/1018-5941

Stock No:

WPIEA0611996

Pages:

36

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