Rebuilding Fiscal Institutions in Postconflict Countries

Occasional Papers, December 27, 2005

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Rebuilding Fiscal Institutions in Postconflict Countries

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Bibliographic details

• Authors: Rina Bhattacharya, Benedict J. Clements, Sanjeev Gupta, Shamsuddin Tareq, Alex Segura-Ubiergo, Todd D. Mattina
• Published: December 27, 2005
• Series: Occasional Papers
• DOI: https://doi.org/10.5089/9781589064492.084

Overview and Purpose

• Discusses experiences in reestablishing fiscal management in postconflict countries.
• Building fiscal institutions in postconflict countries essentially entails a three-step process:
  • (1) creating a legal or regulatory framework for fiscal management;
  • (2) establishing or strengthening fiscal authority; and
  • (3) designing appropriate revenue and expenditure policies while simultaneously strengthening revenue administration and public expenditure management.
• Based on experiences in 14 postconflict countries, the paper reviews the challenges in rebuilding fiscal institutions and identifies key priorities in the fiscal area following the cessation of hostilities.

Major Findings from 14 Postconflict Countries

• Rebuilding fiscal institutions requires sequencing: legal framework → fiscal authority → policy design and administrative strengthening.
• Core areas of focus include:
  • Revenue administration and Tax administration core functions.
  • Public expenditure management (PFM) and Expenditure control.
  • Institutional arrangements for revenue administration.
• Challenges documented span institutional capacity, governance, and the need to establish credible fiscal authority after conflict.

Key Priorities and Policy Recommendations

• Establish a clear legal or regulatory framework for fiscal management as an initial priority.
• Build or strengthen a legitimate fiscal authority to implement and oversee fiscal policy.
• Design appropriate revenue and expenditure policies that reflect postconflict realities.
• Simultaneously strengthen:
  • Revenue administration, including tax administration core functions; and
  • Public expenditure management (PFM), including budget execution and treasury management.
• Emphasize institution building and building country ownership in the reform process.

Subject Areas and Keywords

• Subject areas:
  • Budget execution and treasury management
  • Expenditure
  • Institutional arrangements for revenue administration
  • Public financial management (PFM)
  • Revenue administration
  • Tax administration core functions
• Keywords:
  • building country ownership, conflict country, conflict management institution, country, Global, government, government spending, IMF staff estimate, institution building, Institutional arrangements for revenue administration, OP, real gross domestic product, Tax administration core functions

Content in this bundle

• Rebuilding Fiscal Institutions in Postconflict Countries
  • Rebuilding Fiscal Institutions in Postconflict Countries (Markdown version)
  • Rebuilding Fiscal Institutions in Postconflict Countries (PDF)