Theoretical budget and fiscal concepts applied to the Romanian public sector

Abstract

This paper examines the concepts of budgetary revenues and expenditures, public deficits, and indicators of the efficiency of budgetary resources as applied to the Romanian public sector. The causes of public deficits and public debt are also investigated, with the associated tools and techniques used to finance them. Some policy recommendations are made – regarding a better collection of taxes to the state budget (based on the contributory capacity of the population and on the principle of equivalence) and more prudent government intervention in the economy. A new approach to fiscal policy is proposed, acting as an incentive to rethink it on a more sustainable and transparent base.