The sequencing of multifaceted fiscal reforms is of paramount importance in achieving sustainable outcomes. Regulatory changes in the tax system are a necessary, but not sufficient condition for successful fiscal consolidation. Revenue administration also needs to be strengthened. Increases in revenues should be complemented with more politically challenging measures to enhance expenditure management; budget prioritization and resource allocation; public sector enterprise reform; debt management, and public accountability. Subsequently, encouraging private sector investment through policy actions supports economic growth, and thus fiscal consolidation, by creating opportunities for public-private partnerships and reinforcing government's regulatory function in the economy. Accompanying social programs are likewise necessary to offset the negative impact of the reforms on stakeholders.
Assam Governance and Public Resource Management Sector Development Program