Fiscal Consolidation in Southeastern European Countries: The Role of Budget Institutions
51 Pages Posted: 27 Aug 2012
Date Written: May 2012
This paper assesses the relative strengths and weaknesses of fiscal institutions in ten Southeastern European countries, using recent benchmarking methodologies developed by FAD. The assessment evaluates each country’s understanding of the scale of the fiscal adjustment challenge, its ability to develop a credible consolidation strategy, and its capacity to implement the strategy. Key institutional arrangements, are generally in place, including top-down budgeting and medium-term budget frameworks. Other institutional arrangements require further attention, including macro-fiscal forecasting, fiscal risk analysis, setting fiscal objectives, presence and role of independent fiscal agencies, and top-down parliamentary approval.
Keywords: Fiscal consolidation, Budgets, Risk management, budget process, fiscal objectives, fiscal performance, public finances, budget institutions, medium-term budget, fiscal policy, fiscal discipline, annual budget, budgetary institutions, fiscal agencies, budget execution, fiscal reporting, fiscal risk, fiscal rules, contingent liabilities, budget framework, government expenditure, medium-term budget framework, fiscal forecasting, budget documentation, budget preparation, fiscal risks, performance budgeting, fiscal forecasts, government revenue, fiscal projections, fiscal adjustment, fiscal institutions, fiscal affairs, fiscal outcomes, fiscal affairs department, fiscal transparency, annual budge
JEL Classification: H60, H61, H69
Suggested Citation: Suggested Citation