402
THE EVOLUTION OF FISCAL INDICATORS IN THE LAST YEARS IN
ROMANIA
Mo a Ioan – Dan
Uni e si y o O adea, Facul y o Economics
Sabau-Popa Claudia Diana
Uni e si y o O adea, Facul y o Economics
Kulcsa Edina
Uni e si y o O adea, Facul y o Economics
Tax e enues a e an impo an pa o budge e enues, and hei s uc u e ep esen he mi o
o go e nmen 's iscal policy. Also hei le el and s uc u e e lec s he e olu ion o he economy
in gene al. The e olu ion o ax e enues has been in luenced by he inancial c isis o his
pe iod. The ax e enue s uc u e in Romania is cha ac e ized by ela i ely high sha e o indi ec
axes e enues in compa ison wi h ano he Eu opean Union s a es, whe e he sha e o e enues
om di ec , indi ec axes and social con ibu ion is ela i ely close.
Go e nmen expendi u e is i al o he economy especially i hey a e ocused on p oduc i e
a eas. They a e he engine o economic de elopmen s and plays an impo an ole in aising he
s anda d o li ing o popula ion in a s a e. In he las yea s, he g ow h a e o public expendi u e
was highe han he end o ax e enues inc ease. Sizing e enue and public expendi u e is
essen ial o achie ing he budge balance a ge and o mee he c i e ion s ipula ed in he
S abili y and G ow h Pac . Acco ding o he Pac , he budge de ici may no exceed 3% o GDP.
This de elopmen asymme ic led o inc eased de ici s in he las yea s.
The high le el o s uc u al de ici has canceled an ini ia i e o ax elaxa ion in his ecession
pe iod. The need o iscal consolida ion has been pa amoun in he con ex o ch onic de ici and
di icul ies aced in inancing i . The oppo une solu ion o inance he high public de ici and o
achie e he objec i e o inancial s abili y o he economy was con ac ing o public deb om
In e na ional Mone a y Fund. O he measu es o educe he de ici we e he educ ion o public
expendi u e and inc easing ax e enues.
We p opose in his pape o analyze he e olu ion o iscal indica o s in compa ison wi h he
e olu ion o mac oeconomic indica o s o cap u e he eac ion o axpaye s and economic
en i onmen a measu es adop ed.
Keywo ds: iscal, ax, iscal e enues, budge , inancial c isis
Codu i JEL: E60
I. In oduc ion
The impo ance o iscal policy o a s a e budge is de i ed om he impac ha i mani es s on
he main mac oeconomic indica o s which e lec p og ess h ough economic g ow h. The iscal
–budge a y policy mus be linked o mac oeconomic policies and suppo mac oeconomic
s abili y objec i e. The main objec i es o iscal-budge a y policy a e o s imula e he economic
ac i i y, ising li ing s anda ds, iscal consolida ion, p omo ion o coun e cyclical iscal policies.
The mi o o iscal-budge a y policy is a s a e budge , which includes des ina ions o inancial
esou ces and hei sou ces o unding. Some au ho s conside s ha budge a y policy ep esen
he concep and ac ions o go e nmen o public e enue and expendi u e, he means o aise
e enue, he ypes and size o expendi u e which can in e e e in he s abiliza ion and economic
eco e y( Dob o ă N 1999:354). Al hough he a chi ec u e o e enue and expendi u e depends
403
om economic p io i ies o a s a e, i mus adap o si ua ions a a ime. Th ough he budge a y
policy is e lec ed he e iciency o public expendi u e use and managemen and he alloca ion o
inancial esou ces. The le el and s uc u e o public e enue and expendi u e e lec s he main
ends, di ec ions o ac ion in a s a e economy. So do no neglec “ he impo an ole o policies
and budge a y le e s in he mode n economy”, like i is highligh ed by Cons an in Tulai
p o esso (Tulai C. 2007:68). Fiscal policy o e s he main ools which is used by he go e nmen
o in luence he economy ough changes in axa ion le el o public expendi u e adjus men .
Fiscal policy plays an impo an ole in mi iga ing he economic cycle. Acco ding o se e al
expe s which we subsc ibe oo, he e ec i eness o iscal policy is e lec ed by i s ole o
s abilizing he economy. Thus, we can say ha he op imal ax policy is ac ing o mi iga e he
ampli ude o business cycle luc ua ions, ha in pe iods o ecession adop a lax beha io and in
he expansion pe iods a mo e es ic i e beha io . An impo an indica o by means o we can
es ima e i he iscal policy pe o ms he s abilizing ole is he s uc u al de ici . The s uc u al
de ici shows how many om he iscal-budge a y posi ion le el e lec ed h ough axes,
ans e s, expendi u e due o economic condi ions and how many due o iscal policy decisions
aken. The analysis o his indica o e lec s he sus ainabili y o iscal policy.( Rapo anual:
E oluţii şi pe spec i e mac oeconomice şi buge a e 2011: 23-24)
By he side o mone a y policy, iscal policy has an impo an ole in he gene al economic policy
objec i es. While mone a y policy ac s on sho - e m, he e ec s o iscal-budge a y policy is
ou lined in a medium o long ime ho izon. Howe e he objec i es o he wo ca ego ies o
economic policies mus be linked.
In he con ex o Romania in eg a ion in o he Eu opean Union, ano he conce n is adap ing he
iscal-budge a y policies o EU equi emen s. Op imum sizing o public e enue and expendi u e
is essen ial o achie e budge balance and o espec he objec i e c i e ia laid down in he
Maas ich T ea y. Acco ding o he T ea y, he budge de ici mus no exceed 3% o GDP.
The cu en inancial c isis has exposed some weakness o iscal budge a y policy di ec ion o
Romania ha p o-cyclicali y. Thus, in he con ex o excessi e g ow h in he budge de ici in
Romania is necessa y a budge a y and iscal consolida ion. A g ow h model based on deb and
inc ease in es men in housing and consume sec o , high budge de ici s ha e equi ed iscal
consolida ion e o s.
II. The e olu ion o main iscal indica o s in pe iod 2000-2010
P ocyclical na u e o iscal and budge a y policies o economic g ow h be o e he inancial c isis,
canceled iscal space o s imula e he economy du ing he ecession claiming he need o educe
high budge de ici du ing he c isis and main aining p o-cyclical iscal and budge a y policies.
Al hough Romania is he coun y wi h he highes GDP g ow h in Eu ope bu in he sho e m
his si ua ion ma ks a numbe o unce ain ies abou he ou come o he deep inancial
c isis(Rapo p i ind si uaţia mac oeconomică pen u anul 2009 şi p oiecţia aces eia pe anii 2010-
2012: 8).
Analyzing he e enue and expendi u e in he pe iod 2000-2010, we no ice a end o g ow h, bu
i is no iceable ha since 2006 public expendi u e g ow h has ou ma ched he s ong g ow h end
o public e enues. The sha e o public e enues in GDP in he pe iod 2008-2010 is si ua ed
be ween 32.2% and 32.7%, while he sha e o expendi u e in GDP ha e been g owing la ge ,
anging be ween 37-39, 5%(
Minis y o Finance - Rapo ul la p oiec ul Legii buge ului de s a pen u
anul 2011 şi o izon ul 2012-2012:9
).
This de elopmen esul ed in an exagge a e inc ease in he budge de ici . Unlike o he Eu opean
Union coun ies (I eland, Belgium), whe e he excessi e budge de ici s g ow h is due by
measu es adop ed by na ional go e nmen s o suppo he banking sys em, in Romania he
budge a y de ici is de e mined by wo main ac o s: he d ama ic loss o budge e enues caused
by he GDP collapse and he s uc u al de ici accumula ed by Romanian be o e he s a ing o
inancial c isis. I in
he pe iod 2001
he Maas ich T ea y, since 2008
he sha e o budge de ici o GDP
abou 5.7% om GDP, excee
ding a he
measu es aimed p ima ily e o s o inc ease ax e enue by inc easing he VAT a e
he expendi u e side, e o s we e di ec ed owa ds a educ ion in sala ies o public sec o ,
complemen ed by educing he numbe o employees, a dec ease o 15% o mos social bene i s
and educe spending on goods and se ices by 10%.
G aphic 1. E olu ion
o e enue,
Sou ce
By he side o public e enues, Romania is he s a e wi h he lowes sha e o budge a y e enues
in GDP (32.4% o GDP in 2009), in compa ison wi h o he Eu opean Union coun ies, wi h abou
11% low
e han he EU a e age. Also he sha e o ax e enue o GDP is below he EU a e age.
Analyzing cha below we no ice a downwa d end in he sha e o iscal e enues in o al
go e nmen e enue, emphasizing in he pe iod 2009
economic slowdown and GDP downwa d du ing 2008
e enues in o al e enues du ing 2009
e enue in he o al income.
-40000.0
-20000.0
0.0
20000.0
40000.0
60000.0
80000.0
100000.0
120000.0
Million Lei
REVENUES
404
he pe iod 2001
-2007, he budge de ici was i ed
wi hin he limi s se by
he sha e o budge de ici o GDP
has signi ican ly inc ease
ding a he
pe mi ed h eshold o 3 % o GDP.
Fiscal adjus men
measu es aimed p ima ily e o s o inc ease ax e enue by inc easing he VAT a e
he expendi u e side, e o s we e di ec ed owa ds a educ ion in sala ies o public sec o ,
complemen ed by educing he numbe o employees, a dec ease o 15% o mos social bene i s
and educe spending on goods and se ices by 10%.
o e enue,
public expendi u e and budge a y de ici
2000
Sou ce
: Minis y o Finance- www.m inan e. o
By he side o public e enues, Romania is he s a e wi h he lowes sha e o budge a y e enues
in GDP (32.4% o GDP in 2009), in compa ison wi h o he Eu opean Union coun ies, wi h abou
e han he EU a e age. Also he sha e o ax e enue o GDP is below he EU a e age.
Analyzing cha below we no ice a downwa d end in he sha e o iscal e enues in o al
go e nmen e enue, emphasizing in he pe iod 2009
-2010. This e olu ion is ce a
in
economic slowdown and GDP downwa d du ing 2008
-2009 pe iod.
Reducing he sha e o ax
e enues in o al e enues du ing 2009
-2010 budge is o se by an inc ease o
sha e
REVENUES
- o al TAX REVENUES
wi hin he limi s se by
has signi ican ly inc ease
Fiscal adjus men
measu es aimed p ima ily e o s o inc ease ax e enue by inc easing he VAT a e
wi h 5%. On
he expendi u e side, e o s we e di ec ed owa ds a educ ion in sala ies o public sec o ,
complemen ed by educing he numbe o employees, a dec ease o 15% o mos social bene i s
2000
-2010
By he side o public e enues, Romania is he s a e wi h he lowes sha e o budge a y e enues
in GDP (32.4% o GDP in 2009), in compa ison wi h o he Eu opean Union coun ies, wi h abou
e han he EU a e age. Also he sha e o ax e enue o GDP is below he EU a e age.
Analyzing cha below we no ice a downwa d end in he sha e o iscal e enues in o al
in
ly due o he
Reducing he sha e o ax
sha e
o non- ax
G aphic 2. T end in
sha e ax e enue o o al income du ing 2000
Sou
ce
The ax e enue s uc u e in Romania is cha ac e ized by ela i ely high sha e o indi ec axes
e enues in compa ison
wi h ano he Eu opean Union s a es, whe e he sha e o e enues om
di ec , indi ec axes and social con ibu ion is ela i ely close.
luc ua e be ween 20% and 30% o iscal e enue in he
wi h he sha e o ax e enues om indi ec axes anging be ween 65% and 80%.
s ic ly pe iod 2007-
2009, we can obse ha he
downwa d end om 67.5% in 2007 o 65.1% in 2009.
axes change in 2010, when an inc ease o almos 10 pe cen
This de elopmen is due o aus e i y measu es adop ed by he Romanian go e nmen among
indi ec axes in esponse o IMF condi ion
g adually inc easing excise.
G aphic 3. The sha e o di ec ax and indi ec ax e enue o he o ma ion o ax e enues
Sou ce:
Minis y o Finance
70%
80
2000
2002
2004
2006
2008
2010
%To al Re enues
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
%To al Re enues
Di ec axes(%)
405
sha e ax e enue o o al income du ing 2000
-
2010
ce
: Minis y o Finance- www.m inan e. o
The ax e enue s uc u e in Romania is cha ac e ized by ela i ely high sha e o indi ec axes
wi h ano he Eu opean Union s a es, whe e he sha e o e enues om
di ec , indi ec axes and social con ibu ion is ela i ely close.
Al hough he sha e o di ec axes
luc ua e be ween 20% and 30% o iscal e enue in he
e iwed pe iod, i is lowe i
n compa ison
wi h he sha e o ax e enues om indi ec axes anging be ween 65% and 80%.
2009, we can obse ha he
e enue om indi ec axes knows sligh ly
downwa d end om 67.5% in 2007 o 65.1% in 2009.
The o ien a ion o
e enue om indi ec
axes change in 2010, when an inc ease o almos 10 pe cen
eco d
compa ed wi h 2009.
This de elopmen is due o aus e i y measu es adop ed by he Romanian go e nmen among
indi ec axes in esponse o IMF condi ion
s, namely inc ease in VAT a e
om 19% o 24%,
G aphic 3. The sha e o di ec ax and indi ec ax e enue o he o ma ion o ax e enues
2000-2010
Minis y o Finance
- www.m inan e. o
80
% 90% 100%
Tax e enues (%)
To al e enues
Social Con ibu ions
(%)To al e enues
Non- ax e enues
(%) To al e enues
Capi al e enue (%)
To al e enues
0
% 50% 100%
27.5
30.0
24.9
21.3
25.1
26.0
30.4
32.5
33.1
34.1
25.7
72.5
70.0
75.1
78.7
74.9
74.0
69.6
67.5
66.1
65.1
74.3
Di ec axes(%)
Indi ec axes(%)
2010
The ax e enue s uc u e in Romania is cha ac e ized by ela i ely high sha e o indi ec axes
wi h ano he Eu opean Union s a es, whe e he sha e o e enues om
Al hough he sha e o di ec axes
n compa ison
wi h he sha e o ax e enues om indi ec axes anging be ween 65% and 80%.
Analyzing
e enue om indi ec axes knows sligh ly
e enue om indi ec
compa ed wi h 2009.
This de elopmen is due o aus e i y measu es adop ed by he Romanian go e nmen among
om 19% o 24%,
G aphic 3. The sha e o di ec ax and indi ec ax e enue o he o ma ion o ax e enues
406
Analyzing he main ca ego ies o sou ces o e enue: income ax, VAT, excise du ies and social
con ibu ions can be seen ha he la ges sha e is held by alue added ax, culmina ing in 2006
eco ded alues (8.05% o GDP), 2007 (7.5% o GDP) and 2008 (7.9% o GDP). The e hen
ollows a collapse in 2008-2009 o VAT eceip s. Then ollows a collapse in 2008-2009 o VAT
eceip s. Since 2010, he e enues om VAT has esumed he ascendan end as a esul o
measu es aken by he go e nmen : he inc ease in VAT om 19% o 24% by OUG 58/2010 o
achie e a balance be ween e enues and expendi u es, whe e he income we e s ongly a ec ed
by he inancial c isis. Go e nmen has aken his measu e o inc ease he VAT a e o achie e
he objec i es o iscal policy commi men s ag eed in he bila e al unding ag eemen s concluded
wi h he In e na ional Mone a y Fund, he Wo ld Bank and Eu opean Commission. In
compa ison wi h he e enues om alue added ax, excise e enues a e no awa e such
asymme ic de elopmen s in he analyzed pe iod. A sligh dec ease in e enue om excise du y
in 2008 wi h sligh eco e y obse ed in 2009. The sligh inc ease in excise e enue due o he
inc ease o excise du y applied on 1 Janua y 2010 o ciga e es, elec ici y, hea and gas, o
achie e he minimum le el equi ed by Communi y legisla ion, he inc ease o he a e age a e
RON / EURO conside ed a he compu a ion o excise o 2010 and inc ease he amoun o du y
on some p oduc s. In o de o s udy he impac o iscal changes on he mac oeconomic indica o s
we can say ha measu es o inc ease he a e o VAT and excise du y le els had a nega i e di ec
e ec o in la ion g ow h in Romania. As ega ds di ec axes he e a e high di e ences among
he income axes, a dec ease o app oxima ely 3% o GDP in 2009 compa ed wi h 2008. Since
may 2008, eceip s om co po a e income ax eco ded a sligh dec ease. Dec easing eceip
om di ec axes is de e mined mainly by decline o household income and he le el o p o i s as
a esul o inancial c isis. Measu es aken by he Romanian go e nmen in o de o income ax o
es o e he balance be ween e enues and public spending was empo a y in oduc ion o he
minimum ax in Ap il 2009. F om he analysis o changes in ax eceip s we can obse e ha he
measu e do no p o ided highe eceip s om his sou ce, he e ec was a he gap mi iga ion.
Social bene i s also know a sligh ly downwa d end. The sha e o social con ibu ions o GDP is
s eadily alling since 2006. This de elopmen is he esul o g adually implemen a ion o pension
pilla II, which in ol es a ge ing g adual sha es o social secu i y con ibu ion a e by a p i a e
pension und o in es . G adually implemen a ion o he pension pilla II is achie ed by
inc easing he sha e o social con ibu ions edi ec ed om 2.5% o 3% in 2010. In o de o
es o e balance in he public pension sys em ha e been adop ed e o ming measu es which
include: aising he s anda d e i emen age, inc easing he numbe o hose axpaye s wi h
income om p o essional se ices, manage s, discou aging he numbe o ea ly e i emen , ea ly
pa ial and un ai disabili y e i emen , he expansion base o social con ibu ions.
O e all we conclude ha he inancial c isis e ec s ha e been e iden since he end o 2008,
esul ed in a s ong decline a e he main sou ces o inancing s a e budge .

G aphic 4. E olu ion o he main sou ces o inancing s a e budge 2000
Sou ce
In e
ms o economic con ac ion and he budge de ici inancing needs in 2008 (5.7% o GDP),
Romania's public deb inc eased. The op imal solu ion o inancing, he high de ici and deb
e inancing, espec i ely o achie e he objec i e o inancial s abili y
con ac ing o public deb om he In e na ional Mone a y Fund( Ma a Eugenia Ramona, Inceu
Ad ian, Cuceu Ionuţ, Achim Monica Viole a 2005: 5). Inc easing public deb g ow h is due
mainly by he inc easing o go e nmen deb , local deb
go e nmen deb shows ha public deb con ac ed di ec ly by he s a e is abou 90% o he o al
public deb and deb gua an eed by he s a e go e nmen is abou 10% o he o al.
si uaţia mac oeconomică pen
u anul 2009
he public deb by he cu encies in 2010, we can obse e
Eu o (44.1%), ollowed by
na ional
o al deb go e nmen . High
sha e
domes ic and o eign.
Romania's public
eaching he 2010 le el o 30.8
%
Maas ich T ea y o 60% o GDP.
G aphic 5. E olu ion o public deb and budge de ici 2001
0
1
2
3
4
5
6
7
8
9
2000
2001
2002
2003
2004
%GDP
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2001
2002
%GDP
407
G aphic 4. E olu ion o he main sou ces o inancing s a e budge 2000
-
2010
Sou ce
: Minis y o Finance- www.m inan e. o
ms o economic con ac ion and he budge de ici inancing needs in 2008 (5.7% o GDP),
Romania's public deb inc eased. The op imal solu ion o inancing, he high de ici and deb
e inancing, espec i ely o achie e he objec i e o inancial s abili y
o he economy was
con ac ing o public deb om he In e na ional Mone a y Fund( Ma a Eugenia Ramona, Inceu
, Achim Monica Viole a 2005: 5). Inc easing public deb g ow h is due
mainly by he inc easing o go e nmen deb , local deb
emained cons an . The s uc u e o
go e nmen deb shows ha public deb con ac ed di ec ly by he s a e is abou 90% o he o al
public deb and deb gua an eed by he s a e go e nmen is abou 10% o he o al.
u anul 2009 şi p oiecţia aces eia pe anii 2010
-2012
: 30). Analyzing
he public deb by he cu encies in 2010, we can obse e
he mos impo an componen is he
na ional
cu ency (43.5%), while o he cu encies ha e only 12.4% o
sha e
o deb in eu os due o he hi ing o loans
in eu o
Romania's public
deb has inc eased signi ican ly in
he las
%
o GDP, which is well below he ceiling
imposed
G aphic 5. E olu ion o public deb and budge de ici 2001
-2010
Sou ce: Eu os a
2004
2005
2006
2007
2008
2009
2010
Co po a e ax/GDP
Income Tax/GDP
VAT/GDP
Excise/GDP
Social Co ibu ion/GDP
2002
2003
2004
2005
2006
2007
2008
2009
2010
Budge de ici
Public deb
2010
ms o economic con ac ion and he budge de ici inancing needs in 2008 (5.7% o GDP),
Romania's public deb inc eased. The op imal solu ion o inancing, he high de ici and deb
o he economy was
con ac ing o public deb om he In e na ional Mone a y Fund( Ma a Eugenia Ramona, Inceu
, Achim Monica Viole a 2005: 5). Inc easing public deb g ow h is due
emained cons an . The s uc u e o
go e nmen deb shows ha public deb con ac ed di ec ly by he s a e is abou 90% o he o al
public deb and deb gua an eed by he s a e go e nmen is abou 10% o he o al.
( p i ind
: 30). Analyzing
he mos impo an componen is he
cu ency (43.5%), while o he cu encies ha e only 12.4% o
in eu o
, bo h
he las
wo yea s,
imposed
by he
Co po a e ax/GDP
Social Co ibu ion/GDP
408
III. Conclusions
Th ough he inancing ag eemen s concluded wi h he IMF and he Eu opean Commission, he
Romanian go e nmen has asumed an adjus men p og am o educe he gene al go e nmen
de ici a 4.4% o GDP o 2011 o 3% in 2012, and mos adjus men measu es a e al eady in
o ce. This u he implies keeping unde con ol public spending and he elimina ion o
disc e iona y iscal policy measu es a ec ing he e enues.
In conclusion we can say ha Romania's iscal policy should emain a conse a i e, es ic i e
owa ds he goal o iscal consolida ion.
Re e ences:
1. Consiliul Fiscal, “Rapo anual: E oluţii şi pe spec i e mac oeconomice şi buge a e”, ma ie
2011
2. Dob o ă N., “Dicţiona de Economie”, Edi u a Economică, Bucu eş i, 1999, p. 354
1
3. Ma a Eugenia Ramona, Inceu Ad ian, Cuceu Ionuţ, Achim Monica Viole a, “The impac o
economic c isis on he iscal e enues”, The Jou nal o he Facul y o Economics - Economic-
Volum 3, O adea, 2009
4. Minis e ul de Finanţe, “Rapo ul la p oiec ul Legii buge ului de s a pen u anul 2011 şi
o izon ul 2012-2014”
5.“Rapo p i ind si uaţia mac oeconomică pen u anul 2009 şi p oiecţia aces eia pe anii 2010-
2012”
6.Tulai, C., „Finanţe”, Edi u a Casa Că ţii de Ş iinţă, Cluj-Napoca, 2007