{
  "title": "Budgetary Subsidies in Centrally Planned Economies in Transition",
  "publication": "IMF Working Papers, January 1, 1991",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/budgetary-subsidies-in-centrally-planned-economies-in-transition-887",
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  "summary": "This paper analyzes budgetary subsidy policy issues that arise when centrally planned economies move toward a market economy.",
  "sections": [
    {
      "heading": "Executive summary and core findings",
      "content": "- The paper analyzes budgetary subsidy policy issues that arise when centrally planned economies move toward a market economy.\n- Successful subsidy reduction must be embedded into an overall economic reform program.\n- During program execution, former implicit subsidies are likely to become budgetized.\n- Enterprise restructuring and the introduction of social safety net provisions impose additional pressure on the budget and necessitate careful policy design.\n- Comprehensive budgetary reform is required to prevent budgetary slippages during the transition process."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Embed subsidy reduction within a broader, coherent economic reform program to ensure sustainability.\n- Anticipate and plan for the budgetization of former implicit subsidies as price liberalization and market reforms progress.\n- Design enterprise restructuring programs with explicit attention to their fiscal impact to avoid uncontrolled budgetary pressures.\n- When introducing or expanding social safety net provisions during transition, calibrate program design to limit adverse fiscal consequences.\n- Implement comprehensive budgetary reform measures to strengthen public financial management (PFM) and prevent budgetary slippages during transition."
    },
    {
      "heading": "Analytical themes and topics covered",
      "content": "- Budget planning and preparation\n- Expenditure and public financial management (PFM)\n- Government subsidies and their transformation during transition\n- Housing and consumer goods pricing implications\n- Inflation and price liberalization effects\n- National accounts and trade prices\n- Enterprise reform, enterprise restructuring, and implications for the enterprise sector\n- Transition from a socialized enterprise model to market mechanisms\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/budgetary-subsidies-in-centrally-planned-economies-in-transition-887"
    }
  ],
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    "Authors: Robert Holzmann",
    "Published: January 1, 1991",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451925883.001",
    "The paper analyzes budgetary subsidy policy issues that arise when centrally planned economies move toward a market economy.",
    "Successful subsidy reduction must be embedded into an overall economic reform program.",
    "During program execution, former implicit subsidies are likely to become budgetized.",
    "Enterprise restructuring and the introduction of social safety net provisions impose additional pressure on the budget and necessitate careful policy design.",
    "Comprehensive budgetary reform is required to prevent budgetary slippages during the transition process.",
    "Embed subsidy reduction within a broader, coherent economic reform program to ensure sustainability.",
    "Anticipate and plan for the budgetization of former implicit subsidies as price liberalization and market reforms progress.",
    "Design enterprise restructuring programs with explicit attention to their fiscal impact to avoid uncontrolled budgetary pressures.",
    "When introducing or expanding social safety net provisions during transition, calibrate program design to limit adverse fiscal consequences.",
    "Implement comprehensive budgetary reform measures to strengthen public financial management (PFM) and prevent budgetary slippages during transition.",
    "Budget planning and preparation",
    "Expenditure and public financial management (PFM)",
    "Government subsidies and their transformation during transition",
    "Housing and consumer goods pricing implications",
    "Inflation and price liberalization effects",
    "National accounts and trade prices",
    "Enterprise reform, enterprise restructuring, and implications for the enterprise sector",
    "Transition from a socialized enterprise model to market mechanisms"
  ],
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