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Correlations Between Fiscal - Budgetary Policy And The Economic Development In Romania

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  • DOBROTA GABRIELA

    (CONSTANTIN BRÂNCUȘI UNIVERSITY OF TÂRGU JIU, FACULTY OF ECONOMIC AND BUSSINES ADMINISTRATION)

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    Abstract

    Using fiscal policy in order to achieve non-financial targets long is no longer a novelty, the economic development being a priority for any country, the government being interested by the levers that can be used in this sense. In the paper is realised an analysis regarding the level of taxation, the evolution of the main components of state budget and the effects fiscal and budgetary policy on economic development in Romania in the period 1991 - 2011. The conclusion that can be detached is that the formulation a fiscal policy and budgetary on long-term, its correlation with the monetary policy, the ensuring an optimal proportion between consumption expenditures and those for development and avoiding to the financing of public expenditure through loans are elements that ensure the economic development. In Romania, the fiscal and budgetary policies promoted after 1990 have not been correlated with the cyclicity of economic life, being often intended to reduce the conventional deficit.

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    File URL: http://www.utgjiu.ro/revista/ec/pdf/2012-03/14_DOBROTA%20GABRIELA%2098-103.pdf
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    Bibliographic Info

    Article provided by Constantin Brancusi University, Faculty of Economics in its journal Constatin Brancusi University of Targu Jiu Annals - Economy Series.

    Volume (Year): 3 (2012)
    Issue (Month): (September)
    Pages: 98-103

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    Handle: RePEc:cbu:jrnlec:y:2012:v:3:p:98-103

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    Related research

    Keywords: degree of taxation; state budget deficit; fiscal policy; economic development;

    References

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    1. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    2. Christian E. Weller & Manita Rao, 2008. "Can Progressive Taxation Contribute to Economic Development?," Working Papers wp176, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Engen, Eric M. & Skinner, Jonathan, 1996. "Taxation and Economic Growth," National Tax Journal, National Tax Association, vol. 49(4), pages 617-42, December.
    4. Ioan Talpos & Bogdan Dima & Mihai Ioan Mutascu & Cosmin Eugen Enache, 2008. "Tax Politcy and Social Output: The UE Case," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 8(8(525)), pages 09-30, August.
    5. Stephen J. Turnovsky, 1999. "Fiscal Policy and Growth in a Small Open Economy with Elastic Labor Supply," Canadian Journal of Economics, Canadian Economics Association, vol. 32(5), pages 1191-1214, November.
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