Aspects of Fiscal Performance in Some Transition Economies Under Fund-Supported Programs

Abstract

This paper contains a selective review of some of the key fiscal issues faced by transition economies. The twelve countries that provide the empirical background for this study have all been under Fund programs for at least some of the time since they initiated their transitions from plan to market. The focus of the paper is on medium- and longer-term fiscal issues, such as government solvency and the evaluation of the sustainability of the government’s fiscal- financial-monetary program. The purpose of the paper is to assist the design and implementation of future Fund programs and to improve the quality of the debate about the design and conduct of fiscal policy in transition economies generally.