Reforming budget systems in countries of the former Soviet Union

The countries of the former Soviet Union (FSU) required considerable revisi on to their budget processes and procedures to establish systems consistent with transformation from controlled dependencies within a larger planned e conomy to independent governments of fledgling market-oriented democracies. This article considers the degree to which preexisting, reforming, and ref ormed budget systems in FSU countries deliver the basic expectations of a p ublic sector resource allocation system. Evidence indicates failures to rea lign budgeting and finance systems designed for command and control environ ments to the demands of more market based economic systems, with effects of ten magnified by the hybrid economies of these transitional states. Signifi cant difficulties and shortcomings in the ability of existing systems to pe rform basic public sector allocation, management, and control functions are the result, but some countries are ahead of others and their experience ca n guide reforms across the FSU.