## Fiscal Reform Over Ten Years of Transition

_IMF Working Papers, June 1, 2000_

## Source details

**Canonical URL:** [Fiscal Reform Over Ten Years of Transition](https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-reform-over-ten-years-of-transition-3649)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/fiscal-reform-over-ten-years-of-transition-3649/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/30/fiscal-reform-over-ten-years-of-transition-3649/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/30/fiscal-reform-over-ten-years-of-transition-3649/bundle-manifest.json)

## Bibliographic details
- Authors: George C. Tsibouris, Vito Tanzi
- Published: June 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451853698.001

---

### Overview and Core Argument
- Authors: George C. Tsibouris, Vito Tanzi
- Publication date: June 1, 2000
- Paper analyzes fiscal reforms in transition economies during the decade leading up to 1998.
- Central thesis: Macroeconomic stabilization, price liberalization and privatization—the core reforms visualized by the shock therapy approach—are necessary but not sufficient conditions for a complete transition to a market economy.
- Additional requirements identified:
  - Creation of new fiscal institutions.
  - Changes in incentives and processes.
  - Changes in the role of government.

### Major Themes and Findings
- Fiscal reform in transition economies requires deep institutional change beyond initial macroeconomic and structural reforms.
- Emphasis on transforming government operations and priorities to support a market economy.
- Attention to both revenue- and expenditure-side reforms, including:
  - Revenue administration and tax system reforms.
  - Expenditure management, including pension spending and wage bill control.
- Privatization highlighted as necessary but needing complementary fiscal and institutional reforms to ensure sustainable transition outcomes.

### Policy Implications and Recommendations
- Develop and implement new fiscal institutions tailored to market-economy functions.
- Reform tax administration core functions to strengthen tax revenue mobilization.
- Reassess and realign the role of government to reduce inappropriate government apparatus and support private sector development.
- Address pension spending and other expenditure items to manage general government expenditure and the general government balance.
- Use privatization as part of a broader fiscal reform program that includes incentive and process changes.

---

## Content in this bundle

- **Fisical Reform Over Ten Years of Transition: WP/00/113**
  - [Fisical Reform Over Ten Years of Transition: WP/00/113 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00113.pdf.md){rel="alternate" type="text/markdown"}
  - [Fisical Reform Over Ten Years of Transition: WP/00/113 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00113.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-reform-over-ten-years-of-transition-3649_