The Great Crisis and Fiscal Institutions in Eastern and Central Europe and Central Asia

47 Pages Posted: 20 Apr 2016

See all articles by Luca Barbone

Luca Barbone

CASE - Center for Economic and Social Research; Institute for the Study of International Migration

Roumeen Islam

World Bank

Luis Alvaro Sanchez

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2010

Abstract

This paper examines fiscal outcomes in Eastern and Central European countries before and during the global crisis of 2008-2010. These outcomes are evaluated in the context of overall changes in fiscal institutions and global market conditions. Eastern and Central European countries? situations improved dramatically in the pre-crisis period as tax revenues boomed, and fiscal institutions were reformed. Expenditures increased quite significantly in real terms for some of the countries in the pre-crisis era so that when tax revenues collapsed in the wake of the crisis, the countries were left with large deficits. Institutional reform helped countries manage their fiscal situations better, but the crisis also exposed shortcomings of the status quo. In the post-crisis period, fiscal institutions aimed at promoting fiscal discipline are being strengthened. Governments will also need to take a closer look at the sustainability of current expenditure patterns, particularly the strong emphasis on social expenditures.

Keywords: Public Sector Expenditure Policy, Debt Markets, Fiscal Adjustment, Subnational Economic Development, Public Sector Economics

Suggested Citation

Barbone, Luca and Islam, Roumeen and Sanchez, Luis Alvaro, The Great Crisis and Fiscal Institutions in Eastern and Central Europe and Central Asia (October 1, 2010). World Bank Policy Research Working Paper No. 5453, Available at SSRN: https://ssrn.com/abstract=1695324

Luca Barbone (Contact Author)

CASE - Center for Economic and Social Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Institute for the Study of International Migration ( email )

Whitehaven Street
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Roumeen Islam

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-2628 (Phone)
202-676-9810 (Fax)

Luis Alvaro Sanchez

affiliation not provided to SSRN ( email )