Priorities for Further Fiscal Reforms in the Commonwealth of Independent States
IMF Working Papers, October 1, 2003
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- Priorities for Further Fiscal Reforms in the Commonwealth of Independent States
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Bibliographic details
- Authors: Henri Lorie
- Published: October 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451874778.001
Summary
- Building on the substantial progress made in establishing fiscal systems consistent with market economies, the paper identifies priorities for further fiscal structural reforms among the Commonwealth of Independent States (CIS) countries.
- Activities of extra budgetary accounts and quasi-fiscal activities need to be brought into the budget framework.
- Although there is room for improvements, the CIS countries now have, broadly, levels of tax revenues and expenditures not out of line with the international norm, taking into account income levels.
- The main challenges are to further increase the market friendliness of taxation and to implement an efficiency-improving structural reform of the expenditure system while strengthening control and accountability.
Major findings and diagnostics
- Extra budgetary accounts and quasi-fiscal activities are significant and should be integrated into the budget framework.
- Tax revenues and government expenditures in CIS countries are broadly comparable to international norms once income levels are considered.
- Progress has been substantial in establishing fiscal systems consistent with market economies, but structural weaknesses remain.
Policy priorities and recommendations
- Bring activities of extra budgetary accounts into the budget framework.
- Bring quasi-fiscal activities into the budget framework.
- Increase the market friendliness of taxation.
- Implement an efficiency-improving structural reform of the expenditure system.
- Strengthen control and accountability in public financial management.