Fiscal Space Management in Post-Pandemic Economies: Transparency and Governance Challenges

Abstract

This study examines the role of fiscal transparency in
preserving fiscal space during post-pandemic recovery,
focusing on how governance practices, institutional
capacity, and public financial management reforms shape
economic resilience. It addresses the central question of
how governments can balance immediate recovery needs
with long-term sustainability in an environment of
constrained fiscal resources. Using a systematic literature
review of peer-reviewed studies, the article synthesizes
evidence on the effectiveness of transparent fiscal
frameworks, open data systems, and participatory budgeting
in mitigating fiscal risks. The results highlight that countries
with stronger institutional capacity, greater transparency,
and citizen engagement were better able to manage debt,
allocate resources efficiently, and sustain policy flexibility.
The discussion integrates cross-country insights,
emphasizing the governance dimensions of fiscal policy.
The study concludes that embedding openness,
accountability, and innovation into fiscal frameworks is
essential for ensuring equitable, efficient, and sustainable
post-crisis recovery.