THE BUDGETARY DEFICIT – BETWEEN THE PERMISSIVE SIDE AND THE ACTUAL ECONOMICAL REALITY

Alin Opreana
Authors registered in the RePEc Author Service: Diana Marieta Mihaiu Cindea

Romanian Economic Business Review, 2009, vol. 4, issue 3, 111-126

Abstract: A budget deficit is a common economic phenomenon, generally taking place on governmental levels, and occurs when the spending of a Government exceeds that of its financial savings. In fact, budget deficit normally happens when the Government does not plan its expenses, after taking into account its entire savings. At the level of the European Union, the budgetary deficit of the member states was established through the Maastricht treaty: budget deficit level that must be lower than 3% of GDP. According with the restriction regarding the budgetary deficit, there was elaborated an excessive budgetary deficit procedure, annexed to the treaty. The agreement convened by Romania with the FMI and the European Commission states complying with four conditions, mentioned in the paper. At the European Union level the diversity manifests also regarding the financial result recorded by every member state; from a total of 27 member states ,only 9 member states fulfill the criteria regarding the budgetary deficit, and those are: Belgium, Czech Republic, Germany, Estonia, Italy, Slovenia, Slovakia, Austria, and Portugal, the others confronts themselves either with EDP or with the situation of budgetary excess.

Keywords: budgetary deficit; excessive deficit procedure; FMI agreement; fiscal measures (search for similar items in EconPapers)
Date: 2009
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