| Summary: | The relationship between government revenue and expenditure has always been of interest to economists. As of
2020, Romania, unlike other EU Member States, is subject to the Excessive Deficit Procedure, with a deficit of -9.79
percentage points. Based on the recommendations of the Council of the European Union, in June 2021, to readjust the
excessive deficit situation by 2024 at the latest, setting the ESA deficit targets at 8.0% of GDP for 2021, 6.2% of GDP for
2022, 4.4% of GDP for 2023 and 2.9% of GDP for 2024, the paper has as its general objective the analysis of fiscal
sustainability in Romania, as a member state of the European Union. The adjustment of Romania's medium-term budget
deficit is essential to reduce macroeconomic imbalances and, at the same time, to create the fiscal space needed to
implement investments financed by European funds available to Romania.
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