The paper investigates fiscal developments in 112 countries during the 1990s. It finds that although the overall fiscal balance improved in most of them, the composition of this improvement differed. In countries without IMF-supported programs, revenues increased modestly and expenditure declined sharply, while in program countries both postprogram revenue and expenditure declined. In countries with programs that included fiscal structural conditions, however, the adjustment was effected primarily through sharp expenditure compression. No evidence of a statistically significant impact of IMF conditionality was found. Moreover, fiscal developments were influenced by cyclical factors and by the general stance of macroeconomic policies.

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