Russian fiscal trends for 1992-1995

This paper examines Russian budget trends from 1992 to 1995. Following a devastating bout of hyperinflation from 1992 to 1994, the Russian government reversed policy course from emphasizing economic liberalization and, assisted by crucial assistance from the International Monetary Fund, implemented a program of strict fiscal austerity with the 1995 budget. The paper examines major components of revenues and expenditures, with attention to ratio shifts between the central and regional governments. Although important progress toward economic stability has been achieved, further efforts for stabilization are necessary while difficulties in collecting taxes mean the revenue base remains shaky.