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RESEARCH PRODUCT

The effects of fiscal policies on the economic growth in Romania

Ialomiteanu Razvan GheorgheDanu Aurelian LeonardBucoi Alexandru

subject

budgetary deficitlcsh:HB1-3840fiscal policieslcsh:HB71-74lcsh:Economic theory. Demographylcsh:Economics as a scienceeconomic growth

description

This paper intends to examine the results of fiscal policy implementation in Romania, their impact on economic growth and how fiscal policies have influenced the growth of budgetary deficits. Our objective is to highlight and explore efficient fiscal consolidation strategies that can ensure a stable economic growth through sustainable public finances. The methodology consists in analysing the information provided by national and international financial institutions, comparing it to past, proposed and assumed values, and examining the efforts and results. The conclusion we reached was that, in order to restore the sustainability of public finances, the need arises for considerable fiscal consolidation effort, as well as for deep structural reforms, with a view to creating favourable conditions for sustainable economic growth. Indeed, by implementing suitable fiscal policies, Romania exited the excessive deficit procedure in 2011.