Tax Policy under the Curse of Low Revenues: The Case of Romania (Part I)

Daniel Daianu (), Ella Kallai () and Laurian Lungu ()
Additional contact information
Daniel Daianu: SNSPA, Bucharest
Ella Kallai: Alpha Bank Romania

Journal for Economic Forecasting, 2012, issue 1, 156-186

Abstract: The Romanian tax revenue-to-GDP ratio has been far below the average level of both the European Union and the New Member States for many years. The decade long growth cycle hid significant structural imbalances in the public budget. This paper attempts to identify reasons why tax revenues in Romania are the lowest among the EU-27 countries. It takes a broader perspective by looking at the main sources of tax revenues over the last two decades. Implications of the policy regime change following the introduction of flat tax in 2005 are considered. It also does a few comparisons with other countries from Central and Eastern Europe by looking at the main tax revenue components.

Keywords: Budgetary Revenues; Taxation; Implicit Tax Rates; Arrears; Shadow Economy (search for similar items in EconPapers)
JEL-codes: H24 H25 H26 H30 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.ipe.ro/rjef/rjef1_12/rjef1_2012p156-186.pdf

Related works:
Journal Article: Tax Policy under the Curse of Low Revenues: The Case of Romania (Part II) (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2012:i:1:p:156-186

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).