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The Effect of Fiscal Policy Measures on the Budget Deficit

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  • Badiu (Cazacu) Cristina Elena

    (Transilvania University of Brasov, Romania)

Abstract

Taxation is the result of a compromise between different interest groups whose claims are often contradictory. Taxpayers, individuals or legal entities, want to pay taxes as low as possible, but to have the highest possible benefits from the state: free and quality education, high-performance medical system, competent and sufficient police, an efficient legal system, and companies want a lower tax burden, well-trained workforce, affordable know-how. This means, in fact, that economic efficiency is determined by several factors, but also by significant mandatory levies (taxes and duties). In order for the state to be able to ensure these benefits for its taxpayers, it needs resources, which, in order to be collected, need strict rules, laws, which on the one hand have a coercive character, and on the other hand to encourage taxpayers to pay taxes.

Suggested Citation

  • Badiu (Cazacu) Cristina Elena, 2021. "The Effect of Fiscal Policy Measures on the Budget Deficit," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 209-223.
    • Handle: RePEc:ddj:fserec:y:2021:p:209-223
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    References listed on IDEAS

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    1. Alberto Alesina & Filipe R. Campante & Guido Tabellini, 2008. "Why is Fiscal Policy Often Procyclical?," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1006-1036, September.
    2. Aura COLAN & Angela-Eliza MICU, 2021. "Education, Research and Innovation - Three Important Pillars in the Process of Implementing the Total Quality Management," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 68-79.
    3. Talvi, Ernesto & Vegh, Carlos A., 2005. "Tax base variability and procyclical fiscal policy in developing countries," Journal of Development Economics, Elsevier, vol. 78(1), pages 156-190, October.
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