Volume 43, Number 168,
January-March 2012
Crisis and Economy Recovery: The Role of Fiscal Policy
Moritz Cruz and Javier Lapa
CRISIS, ECONOMIC RECOVERY AND FICAL POLICY:
EMPIRICAL EVIDENCE FOR ARGENTINA, BRAZIL, KOREA, MEXICO AND RUSSIA ( ...continuation )

The Russian government, for its part, faced the crisis with a series of fiscal initiatives granted to the manufacturing sector. As a result, public spending remained practically constant in 1999, compared with the previous year, while public revenue rose from 9.8% to 12.6% of gdp15 (see Table 5) owing to the improvement of the revenue collection system and the good performance of petroleum prices during this year. Furthermore, owing to the external debt moratorium and the inability to cover internal debt, the amount allocated to payment was reduced from 5.3% to 2.7% of gdp, which facilitated the expansion of public spending. This expansion was enhanced by the broadening of State regulation, all the while permitting the strategic reorganization of government spending and improvements to the distribution of budget revenue between different levels of government. Over the next few years, public revenue increased considerably as a result of good performance of international prices and raw materials. However, this revenue fell in 2000, and reached the levels of 1999 in 2001. In this way, Russian fiscal policy immediately before and after the crisis was contra-cyclical, which was fundamental for the economic recovery we have observed.

15 This revenue provided the government with the savings capacity it needed to tackle interest payments on external debt, and saved it from having to look for new means of financing public spending. It also favoured the institutionalization of the economy, which began with the regularization of state activity, giving the state better instruments and more political authority to regulate economic activity.

Published in Mexico, 2012-2017 © D.R. Universidad Nacional Autónoma de México (UNAM).
PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 193, April-June 2018 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
CP 04510, México, D.F. Tel (52 55) 56 23 01 05 and (52 55) 56 24 23 39, fax (52 55) 56 23 00 97, www.probdes.iiec.unam.mx, revprode@unam.mx. Journal Editor: Moritz Cruz. Reservation of rights to exclusive use of the title: 04-2012-070613560300-203, ISSN: pending. Person responsible for the latest update of this issue: Minerva García, Circuito Maestro Mario de la Cueva s/n, Ciudad Universitaria, Coyoacán, CP 04510, México D.F., latest update: June 27th, 2018.
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The online journal Problemas del Desarrollo. Revista Latinoamericana de Economía corresponds to the printed edition of the same title with ISSN 0301-7036