This report reviews the level, composition and outcomes of government spending and distills some of the lessons that emerge from efforts by the Southeast Europe (SEE) countries in reforming expenditure policies. The report identifies key remaining challenges and proposes a broad menu of options...

The countries of Southeast Europe have undergone a significant transition over the past decade. Helped by macroeconomic stabilization and efforts in advancing structural reforms, real GDP growth has picked up this century. Fiscal adjustment has been an integral part of the transition....