Fiscal Transition in Countries of the Former Soviet Union: An Interim Assessment
IMF Working Papers, June 1, 1996
Source details
- Canonical URL
- Fiscal Transition in Countries of the Former Soviet Union: An Interim Assessment
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Bibliographic details
- Authors: Jeffrey M. Davis
- Published: June 1, 1996
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451848120.001
Summary and purpose
- Reviews the uneven record of fiscal performance in the states of the former Soviet Union since independence.
- Highlights that deficits have come down rapidly, contributing importantly to stabilization.
- Notes that stabilization was achieved in the context of an unexpectedly severe revenue decline and limited financing, implying reliance on expenditure cuts.
Main findings on fiscal outcomes
- Deficits have come down rapidly.
- The stabilization was reached by sharp cuts in expenditure.
- The cuts were abrupt and not focused on transition goals.
- The instruments used to implement cuts vitiated normal budgetary processes.
- Benchmarks of fiscal success other than stabilization are elusive.
Expenditure cuts and budget process
- Expenditure cuts were:
- Sharp.
- Abrupt.
- Not focused on transition goals.
- Instruments for implementing cuts undermined normal budgetary processes (no further technical details provided in source).
Social spending, government intervention, and restructuring
- Government intervention and subsidies remain important.
- Social spending is inefficient.
- There is little evidence in the budget of restructuring.
Subject coverage and keywords (as listed)
- Subjects: Arrears; Budget planning and preparation; Currencies; Economic sectors; Expenditure; External debt; Privatization; Public financial management (PFM); Social assistance spending.
- Keywords: Arrears; Baltics; Budget planning and preparation; FSU government; General government deficit; government capital formation; government expenditure priority; government intervention; government procurement; governments' inability; Privatization; reform government; Social assistance spending; state enterprise; subsidy entitlement; WP.