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Public Revenues And Social Polarization In Romania

Author

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  • DOBRE, Alin Stelian

    (PhD School of Romanian Academy (SCOSAAR))

Abstract

Romania's public revenues to GDP are among the lowest in the EU, 34% of GDP in 2014 due to tax evasion, and the structure of GDP, some components which are not subject of taxation or taxed less. A low percentage of government revenue in GDP can be a positive factor for a functional market economy that allow more financing sources for investments in private sector. However, tax evasion is very dangerous for the economy because the tax burden is borne only by the fair of economic agents which may go in bankrupt or cannot develop. GDP per capita in Romania is less than a quarter of the EU average. Social polarization is high in Romania, the Gini coefficient is quite high for Romania, 34% in 2013, which demonstrates the high degree of poverty for some social categories. Aligning EU prices for electricity and gas can generate lower standard of living and serious social tensions.

Suggested Citation

  • DOBRE, Alin Stelian, 2015. "Public Revenues And Social Polarization In Romania," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 19(2), pages 92-103.
  • Handle: RePEc:vls:finstu:v:19:y:2015:i:2:p:92-103
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    More about this item

    Keywords

    public revenues; expenditures; tax collection; social polarization;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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