The challenges to long run fiscal sustainability in Romania
AbstractRomania, along with many other countries in the European Union, faces daunting fiscal challenges. Fiscal balances deteriorated sharply following the global economic crisis, forcing Romania to implement a fiscal consolidation that was one of the largest in the European Union, but which may not be sustainable without a recovery of economic growth. Although the ratio of public debt to gross domestic product is still relatively modest, at around 35 percent, long-term fiscal solvency is threatened by the costs of funding the public pension system in the face of adverse demographic shifts over the next 50 years. Because of widespread tax evasion, the tax system in Romania is one of the least efficient in the European Union. Tax reforms that can reduce the amount of tax lost to evasion and fraud could make a major contribution to enhancing fiscal sustainability.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5927.
Date of creation: 01 Jan 2012
Date of revision:
Debt Markets; Public Sector Expenditure Policy; Emerging Markets; Public Sector Economics; Fiscal Adjustment;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-01-10 (Accounting & Auditing)
- NEP-ALL-2012-01-10 (All new papers)
- NEP-EEC-2012-01-10 (European Economics)
- NEP-IUE-2012-01-10 (Informal & Underground Economics)
- NEP-PBE-2012-01-10 (Public Economics)
- NEP-TRA-2012-01-10 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- World Bank, 2013. "Reviving Romania's Growth and Convergence Challenges and Opportunities : A Country Economic Memorandum," World Bank Other Operational Studies 16036, The World Bank.
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