ROMANIA'S FISCAL POLICY DURING THE CURRENT CRISIS: PRESENT AND FUTURE PROSPECTS

Fiscal policy is an important government tool for managing the economy, its instruments having impact on aggregate demand, resource allocation, and income distribution. This article is focused on the Romanian fiscal policy during the global crisis, providing an overview regarding the circumstances that lead to fiscal imbalances and analysing the fiscal response to the current crisis. The conclusion is that Romania has conducted an inconsistent and ineffective fiscal policy, contributing to macroeconomic imbalances and to increasing fiscal pressure on business environment. Therefore, a mediumterm fiscal framework has to be implemented, in order to ensure fiscal sustainability.