A Growth-Friendly Path for Building Fiscal Buffers in the Caucuses and Central Asia

By Edward R Gemayel, Lorraine Ocampos, Matteo Ghilardi, James Aylward

April 10, 2018

Preview Citation

Format: Chicago

Edward R Gemayel, Lorraine Ocampos, Matteo Ghilardi, and James Aylward. A Growth-Friendly Path for Building Fiscal Buffers in the Caucuses and Central Asia, (USA: International Monetary Fund, 2018) accessed July 18, 2025

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Since 2014, large and persistent external shocks have hit the CCA region, particularly a slump in global commodity prices and slower growth in its key economic partners. Fiscal accommodation, along with currency adjustment, has helped the CCA mitigate the impact of the external shocks. However, amid weakening revenues, increased public spending has widened budget deficits, weakened external balances, and increased public debts. Fiscal policy and strengthening fiscal frameworks must play a central role in helping build buffers and ensuring debt sustainability while supporting growth. This requires (1) tightening fiscal policies to reduce deficits to help restore external balance and fiscal sustainability, (2) strengthening tax systems and tax collection and tilting expenditure toward a more productive and growth-enhancing composition, and (3) implementing public financial management reforms and strengthening fiscal institutions, including through fiscal rules.

Subject: Commodities, Expenditure, Fiscal policy, Oil, Public debt, Revenue administration

Keywords: CCA country, Central Asia and the Caucasus, Commodity exporter, Country, DP, DPPP, GDP ratio, Gross investment, Increase revenue productivity, Oil, Oil exporter, Oil importer, Review taxation, Tajikistan share, Tajikistan's measure, Tax revenue, Turkmenistan share

Publication Details

Pages:

55
Volume:

---
DOI:

---
Issue:

---
Series:

Departmental Paper No. 2018/006
Stock No:

GFPBFBCCEA
ISBN:

9781484337165
ISSN:

2616-5333

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Departmental Papers