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Over the past 20 years, the nations of jap Europe, Caucasus and principal Asia (EECCA) have gone through major political and fiscal reforms. As a part of this reform time table, they've got began modernising their public administrations and expenditure administration practices, bringing them toward foreign criteria. in spite of the fact that, the new international monetary and monetary predicament published a large number of last structural weaknesses within the public monetary structures of those international locations that badly affected their financial functionality. whereas this situation is a true problem, it additionally presents a chance for the EECCA governments to hurry up the implementation of public finance reforms (PFRs) in an effort to offer a more fit foundation for additional improvement. This document goals to aid EECCA environmental administrations to harness the aptitude merits of on-going PFRs; rather the shift to multi-year budgeting, balance of investment, and, finally, a more suitable use of public funds. extra particularly, the level to which the environmental quarter is built-in into medium-term budgetary procedures is analysed. in this foundation, the possibilities for, and boundaries to, attaining monetary sustainability of public environmental programmes are pointed out. The research relies on a neighborhood survey of 10 EECCA international locations that concerned either ministries of atmosphere and finance.    

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In addition, of the ten countries that participate in the survey, Azerbaijan, Belarus, Georgia, the Russian Federation and Ukraine have an environmental authority which combines responsibilities for managing both natural resources and environmental protection. With such an institutional arrangement the management of natural resources often overshadows environmental pollution management functions. And even in this case, certain functions are jointly carried out with other relevant ministries, agencies or committees.

Social sector spending is the focus of national policies. In addition, at times of budget deficit or financial crisis, the environment sector is often among the first ones to suffer budget cuts. GREENING PUBLIC BUDGETS IN EASTERN EUROPE, CAUCASUS AND CENTRAL ASIA © OECD 2011 2. THE REGIONAL AND INTERNATIONAL CONTEXT – 41 Because of these specifics of the environmental sector, environmental authorities in the EECCA countries often run the risk of being marginalised, particularly at times of crises.

1 Ukraine Uzbekistan Note: * – 2008 data; ** – 2007 data; n/a – data non available. Source: IMF, World Bank, EBRD. As a result of the crisis and contracted economies, the fiscal position of the EECCA governments has weakened by the generally low share of government tax revenue in GDP which has also substantially declined in 2009 in comparison with 2008. Armenia, Georgia, Moldova, Ukraine experienced significant government deficits in 2009. Workers’ remittances declined as well. All this limits the public expenditure capacity at all levels of government.

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