Budget Institutions and Fiscal Performance in Central and Eastern European Countries

Abstract

This paper documents the modes of organization of the budget process in ten CEEC and examines the relationship between these institutional settings and fiscal performance. Using detailed information on the budget institutions in these countries, the national budget processes are classified according to their coordination and conflict resolution properties. Empirical results show that budget procedures that are conducive to reducing collective action problems have been associated with more fiscal discipline.

Keywords: Budget institutions, fiscal policy, transition countries

JEL Classification: D70, E60, H61, P20, P30