Budgetary Subsidies in Centrally Planned Economies in Transition

January 1, 1991

Preview Citation

Format: Chicago

Robert Holzmann. Budgetary Subsidies in Centrally Planned Economies in Transition, (USA: International Monetary Fund, 1991) accessed November 24, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes budgetary subsidy policy issues that arise when centrally planned economies move toward a market economy. The analysis suggests that subsidy reduction, to be successful, has to be embedded into an overall economic reform program and that during the program’s execution, former implicit subsidies are likely to become budgetized. Furthermore, additional pressure on the budget, caused by enterprise restructuring or the introduction of social safety net provisions, necessitates careful policy design. Comprehensive budgetary reform is required to prevent budgetary slippages during the transition process.

Subject: Budget planning and preparation, Expenditure, Government subsidies, Housing, Inflation, National accounts, Prices, Public financial management (PFM)

Keywords: Banking system, Budget planning and preparation, Central and Eastern Europe, Consumer goods, Eastern Europe, Economic system, Enterprise reform, Enterprise restructuring, Enterprise sector, Global, Government subsidies, Housing, Inflation, Market economy, Price liberalization, Socialized enterprise, Trade price, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/011
Stock No:

WPIEA0111991
ISBN:

9781451925883
ISSN:

1018-5941

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