Freinkman, Lev and Gyulumyan, Gohar and Kyurumyan, Artak (2002): Quasi-fiscal activities, hidden government subsidies, and fiscal adjustment in Armenia. Published in: World Bank Working Paper No. 16 (2003)
Download (333kB) | Preview
This paper aims to develop a detailed analysis of quasi-fiscal deficits and subsidies, and their impact on Armenia’s fiscal performance in the second part of the 90-s. Based on the flow-of-funds approach, we estimate the magnitude of the quasi-fiscal deficits and the incidence of quasi-fiscal subsidies in Armenia, as well as identify main recipients and donors of quasi-fiscal financing. The main finding of the paper is that, while quasi-fiscal deficits in Armenia remain considerable, their recent decline has been the main source of fiscal adjustment in Armenia to date. The paper also shows that the population remains a major ultimate recipient of quasi-fiscal subsidies. Thus, the main distortive impact of quasi-fiscal subsidies is on social policy, not on enterprise restructuring and private sector performance.
|Item Type:||MPRA Paper|
|Original Title:||Quasi-fiscal activities, hidden government subsidies, and fiscal adjustment in Armenia|
|Keywords:||Armenia, subsidies, fiscal adjustment, quasi-fiscal deficit, losses in the energy sector|
|Subjects:||H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P35 - Public Economics
H - Public Economics > H8 - Miscellaneous Issues > H81 - Governmental Loans ; Loan Guarantees ; Credits ; Grants ; Bailouts
|Depositing User:||Mr Lev Freinkman|
|Date Deposited:||16. Aug 2008 10:59|
|Last Modified:||12. Feb 2013 10:00|
Alam, Asad and Mark Sundberg. 2002. A Decade of Fiscal Transition. Policy Research Working Paper No. 2835 (May). World Bank
Delyagin, Michael and Lev Freinkman. 1993. Extrabudgetary Funds in Russian Public Finance. RFE/RL Research Report, vol. 2, No. 48.
Easterly, William. 1999. When is Fiscal Adjustment an Illusion? Economic Policy, 28 (April), 57-86.
Easterly, William and Paulo Viera Da Cunha. 1993. Financing the Storm. Macroeconomic Crisis in Russia, 1992-93. Policy Research Working Paper No 1240. World Bank. Washington D.C.
Freinkman, Lev and Irina Starodubrovskaya. 1996. Restructuring of Enterprise Social Assets in Russia: Trends, Problems, Possible Solutions. Communist Economies & Economic Transformation. Vol. 8, No. 4, pp. 437-469.
Gaddy, Clifford G. and Barry W. Ickes. 1998. Russia’s Virtual Economy. Foreign Affairs, 77:5:53-67.
Horvath, Balazs, Nita Thacker, and Jiming Ha. 1998. “Achieving Stabilization in Armenia.” IMF Working Paper WP-98/38 (March). IMF, Washington, D.C.
International Monetary Fund. 1995. Guidelines for Fiscal Adjustment. Pamphlet Series No. 49. IMF, Fiscal Affairs Department, Washington, D.C.
Kharas, Homi and Deepak Mishra. 2001. Fiscal Policy, Hidden Deficit, and Currency Crises. World Bank Economists’ Forum: 31-48.
PADCO. 2001. Financial and Actuarial Analysis of the Armenian Pension System.Armenia Social Transition Program by the USAID. Report No. 35 (March 19).Yerevan.
Polackova-Brixi, Hana, Hafez Ghanem, and Roumeen Islam. 2001. Fiscal Adjustment and Contingent Liabilities: Case Studies of the Czech Republic and the Former Yugoslav Republic of Macedonia. World Bank Economists’ Forum: 49-77.
Pinto, Brian, Vladimir Drebentsov, and Alexander Morozov. 2000a. Dismantling Russia’s Nonpayments System. Creating Conditions for Growth. World Bank Technical Paper #471.
Pinto, Brian, Vladimir Drebentsov, and Alexander Morozov. 2000b. Give Growth and Macroeconomic Stability in Russia a Chance: Harden Budgets by Eliminating Non-Payments. The Economics of Transition. 8:2:297-324.
Petri, Martin, Gunther Taube and Aleh Tsyvinski. 2002. Energy Sector Quasi-Fiscal Activities in the Countries of the Former Soviet Union. IMF Working Paper,WP/02/60.
Tanzi,Vitto and George Tsibouris. 1999. Fiscal Reform over Ten Years of Transition. Paper presented to the Fifth Dubrovnik Conference on Transition Economies, July 23-25.
World Bank. 1999a. Armenia’s Private Agriculture: 1998 Survey of Family Farms. Washington D.C.
World Bank. 1999b. Non-payments in the Electricity Sector in Eastern Europe and the Former Soviet Union. World Bank Technical Paper No. 423 (June). Washington D.C.
World Bank. 2001a. Armenia, Georgia, Kyrgyz Republic, Moldova, and Tajikistan: External Debt and Fiscal Sustainability. Board Paper. Washington D.C.
World Bank. 2001b. Kyrgyz Republic. Fiscal Sustainability Study. Washington D.C.
World Bank. 2001c. Armenia: Growth Challenges and Government Policies. Report No. 22854-AM (In Two Volumes). Washington D.C.
World Bank. 2002. Armenia. Public Expenditure Review. Washington D.C