Redistribuirea redusa incetineste cresterea economica si provoaca puternice tensiuni sociale

The paper aims to assess the intensity and efficiency of the redistribution function usage of the public finances in Romania compared to other European countries. The analysis highlights that the main redistributive tools, namely fiscal revenues, social transfers and subsidies, as well as public expenditures in health and education, have, in our country, an undersized action relative to the needs. In the context of assuming the construction and functioning of a minimal state, with reduced attributions within the economy and society, Romania is characterized by one of the highest levels of income inequality among citizens, this unfavourable economic and social situation reflecting the modest effectiveness of the redistribution function. It follows, objectively, that the tax system needs to be substantially revised in order to cover all existing resources in society in the field of taxation, without affecting the corporate sector, with a focus on the progressive taxation of global income and property of individuals.