FINANCING THE BUDGET DEFICIT OF ROMANIA IN 2017

Cristian Morozan () and Elena Enache
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Cristian Morozan: "Constantin Brancoveanu" University of Pitesti, Romania
Elena Enache: "Constantin Brancoveanu" University of Pitesti, Romania

Contemporary Economy Journal, 2019, vol. 4, issue 2, 13-20

Abstract: The recent economic crisis has revealed the failure of some cognitive and operational models to relaunch the economic activity. The most persuasive example is the thesis that price stability is equivalent to financial stability, with the full use of resources. Nowadays, we hear more and more often of the idea that the budget deficit becomes a means of relaunching the economic activity, given the fact that it does not already have an inflationary character. It is possible to act upon the demand for public goods and services through the use of short-term funds, thus achieving a flexible budget policy. Within this framework, public spending can be resized in relation to the size of these funds. If no changes are made to tax regulation, fiscal revenues may constitute conjunctural adjustment tools. The idea that budget deficit would be a particularly important economic problem is partly true, because it must, nevertheless, exist. Through it, the redistribution of income between generations, the fiscal relaxation in the case of the variation of the income subject to taxation etc. are ensured.

Keywords: deficit; budget; public administration; economic crisis; financing; investment (search for similar items in EconPapers)
JEL-codes: H62 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:brc:brccej:v:4:y:2019:i:2:p:13-20

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