The pastprocyclicality of fiscal policy in developing economies has been attributed in part to political economy pressurures. This section discusses how credible and well-designed institutional can help mitigate these pressures and support fiscal discipline. In particular, it highlight best practices for three institutional mechanisms- fiscal rules stabilization fund, and medium-term expenditure frameworks(MTEFs) - along with empirical evidence on the relative success of these institutions in strengthening fiscal space and supporting countercyclical fiscal policy.