The Great Crisis and Fiscal Institutions in Eastern and Central Europe and Central Asia
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. East...
| Main Authors: | , , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101020142440 http://hdl.handle.net/10986/3936 |
| Summary: | 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. |
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