ABSTRACT
Fiscal policy sustainability analysis, within the “fiscal diamond” model as carried out in Chapter 3, necessitates a discussion of fiscal revenue sources. Along with the traditional sources, this chapter argues that transition economies have a potential to seek additional sustainable financing alternatives. The chapter extends the “fiscal diamond” analysis and develops a new “fiscal net” framework that helps guide and assess all alternatives. This analysis is one of the key contributions to the innovative approach in fiscal policy in its broadest definition.
