Azerbaijan Has Started Implementation of Fiscal Rules

Eurasia Extractive Industries Knowledge Hub Expert Group Summary : Pro-cyclical budget policy is an essential threat for macroeconomic stability and its effects can be stabilized mostly with application of limiting fiscal rules. Implementation of pro-cyclical policies means that the government makes spending without any limitations and in the case of crisis it continues spending by lending money and by withdrawals from a savings account. Fiscal rules impose the following qualitative restrictions on the size of the public debt, budget deficit, level of spending (as percentage share of GDP, or as the share of rate of growth), volume of income (particularly the amount of transfers between different budget lines)...See more