Quasi-fiscal activities, hidden government subsidies, and fiscal adjustment in Armenia
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10064.
Date of creation: Dec 2002
Date of revision:
Armenia; subsidies; fiscal adjustment; quasi-fiscal deficit; losses in the energy sector;
Other versions of this item:
- Lev Freinkman & Gohar Gyulumyan & Artak Kyurumyan, 2003. "Quasi-Fiscal Activities, Hidden Government Subsidies, and Fiscal Adjustment in Armenia," World Bank Publications, The World Bank, number 15074, March.
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
- H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
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