Challenges and Trajectories of Fiscal Policy and PFM Reform in CEE/CIS

177 Pages Posted: 13 Jul 2010  

Branka Radisav Andjelkovic

affiliation not provided to SSRN

Alexander Chubrik

CASE - Center for Social and Economic Research; IPM Research Center

Marek Dabrowski

CASE - Center for Social and Economic Research; Bruegel; National Research University Higher School of Economics

Roman Mogilevskiy

CASE - Center for Social and Economic Research

Irina Sinitsina

CASE - Center for Social and Economic Research

Przemyslaw Wozniak

CASE - Center for Social and Economic Research

Date Written: July 13, 2010

Abstract

The purpose of this study is to provide an overview of fiscal policies and PFM reforms in 7 countries in the Western Balkans and 12 countries in the CIS, including major macroeconomic and poverty trends, fiscal policy, the size and role of the public sector, public expenditure management and its linkage to policy development, the organization of budget processes on the central and local levels, the role of various actors and tools in PFM, including civil society and the international donor community. The period of 2003-2007 was characterized by an extraordinary high rate of economic growth, both worldwide and in the CEE/CIS region. This created macroeconomic room for meeting numerous development challenges: reducing poverty and inequality, improving the quality and coverage of public services, upgrading infrastructure, and advancing various reforms, including those related to PFM. However, the economic situation deteriorated dramatically in 2008 as a result of the global financial crisis, with deep recession hitting most of the countries in 2009 and bleak perspectives for subsequent years.

It remains to be seen whether the crisis situation will force governments to speed up necessary reforms. In the PFM area major tasks concern lengthening fiscal planning horizon and gradual movement toward performance oriented budgeting (the measure which can allow better expenditure targeting and decrease volatility in expenditure allocation), increasing budget transparency and creating real room for civil society involvement into a budget process. However, the reforms must also involve a broadly defined governance sphere, i.e. improving transparency and accountability of government, modernization of civil service, decentralization, including building a genuine system of local and regional self-government, and other similar measures to improve quality of public services and social policy interventions.

Keywords: Public Finance Management, Fiscal Policy, Central and Eastern

JEL Classification: H51, H52, H53, H61, H62, H63, H77, P36

Suggested Citation

Andjelkovic, Branka Radisav and Chubrik, Alexander and Dabrowski, Marek and Mogilevskiy, Roman and Sinitsina, Irina and Wozniak, Przemyslaw, Challenges and Trajectories of Fiscal Policy and PFM Reform in CEE/CIS (July 13, 2010). CASE Research Paper No. 92. Available at SSRN: https://ssrn.com/abstract=1639438 or http://dx.doi.org/10.2139/ssrn.1639438

Branka Radisav Andjelkovic

affiliation not provided to SSRN ( email )

Alexander Chubrik

CASE - Center for Social and Economic Research ( email )

Sienkiewicza 12
Warsaw, 00-010
Poland

HOME PAGE: http://case-research.eu/strona--ID-strona_glowna,nlang-710.html

IPM Research Center ( email )

50b Zakharova St
Minsk, 220088
Belarus

HOME PAGE: http://research.by/

Marek Dabrowski (Contact Author)

CASE - Center for Social and Economic Research ( email )

61 Jana Pawla II Ave, office 212
Warsaw, 01-031
Poland
+48 22 206 29 00 (Phone)

HOME PAGE: http://www.case-research.eu/en/marek-dabrowski

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium
Belgium

HOME PAGE: http://www.bruegel.org/scholars/scholar-detail/scholar/430-marek-dabrowski/

National Research University Higher School of Economics ( email )

Myasnitskaya 20
Moscow, 101000
Russia

HOME PAGE: http://https://www.hse.ru/en/org/persons/112929885

Roman Mogilevskiy

CASE - Center for Social and Economic Research ( email )

Sienkiewicza 12
Warsaw, 00-010
Poland

Irina Sinitsina

CASE - Center for Social and Economic Research ( email )

12 Sienkiewicza Str.
00-944 Warsaw, 00-010
Poland

Przemyslaw Wozniak

CASE - Center for Social and Economic Research ( email )

Sienkiewicza 12
Warsaw, 00-010
Poland

Paper statistics

Downloads
58
Rank
300,722
Abstract Views
538