Acta Universitatis Danubius. Œconomica, Vol 15, No 5 (2019)

Abstract

This article provided an exploratory review of the trends and main determinants of fiscal deficits in Burundi during the period 1980 – 2017. While the country has undertaken various fiscal policy reforms, revenue growth has been lower than anticipated, and little progress has been achieved in improving public expenditure efficiency. Consequently, fiscal deficits remain large as a percentage of GDP. The major factors contributing to the persistently large fiscal deficits in Burundi include the following: low and volatile economic growth, small economic base with low incomes, large informal economy, and dominance of the primary sectors. In addition, conflict and fragility, large expenditure on military and peace operations, as well as dependency on aid have been identified as major determinants of fiscal deficits in Burundi.