After averaging 16.5 percent of GDP annually between 1985/86 and 1990/91, the overall deficit was cut to 5 percent of GDP in 1991/92 and reduced further to under 2 percent of GDP in 1994/95. The primary budget surplus amounted to 8 percent of GDP in that year.

A number of structural fiscal reforms were implemented to ensure the sustainability of the fiscal adjustment. Tax reforms focused on addressing low elasticity, inefficiency, and heavy reliance of the tax system on external trade through the introduction of a broad-based domestic sales tax, the unification of income tax schedules, and the implementation of trade reform. Expenditure reform centered on streamlining the extensive system of general food and non-food subsidies. In addition, current transfers to public economic authorities were eliminated through improved efficiency, rationalization of their operations, and self-generation of revenues.