Mechanism for Corrective Action on Budget Imbalances
<p>The European Fiscal Compact sets the obligation for the signatory states to establish an automatic mechanism for taking corrective action on budget imbalances. Nevertheless, the European Treaty says nothing about the tools that should be used in order to reach the desired equilibrium of bud...
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| Format: | Article |
| Language: | English |
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Babes-Bolyai University, Cluj-Napoca
2014-02-01
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| Series: | Transylvanian Review of Administrative Sciences |
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| Online Access: | https://rtsa.ro/tras/index.php/tras/article/view/154 |
| _version_ | 1797262745705381888 |
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| author | Ion Lucian CATRINA |
| author_facet | Ion Lucian CATRINA |
| author_sort | Ion Lucian CATRINA |
| collection | DOAJ |
| description | <p>The European Fiscal Compact sets the obligation for the signatory states to establish an automatic mechanism for taking corrective action on budget imbalances. Nevertheless, the European Treaty says nothing about the tools that should be used in order to reach the desired equilibrium of budgets, but only that it should aim at correcting deviations from the medium-term objective or the adjustment path, including their cumulated impact on government debt dynamics. This paper is aiming at showing that each member state has to build the correction mechanism according to the impact of the chosen tools on economic growth and on general government revenues. We will also emphasize that the correction mechanism should be built not only exacerbating the corrective action through spending/ tax based adjustments, but on a high quality package of economic policies as well.</p> |
| first_indexed | 2024-03-11T11:49:17Z |
| format | Article |
| id | doaj.art-db5ec308d60f4f10aaaef4b0bafd4db9 |
| institution | Directory Open Access Journal |
| issn | 1842-2845 |
| language | English |
| last_indexed | 2024-04-25T00:02:00Z |
| publishDate | 2014-02-01 |
| publisher | Babes-Bolyai University, Cluj-Napoca |
| record_format | Article |
| series | Transylvanian Review of Administrative Sciences |
| spelling | doaj.art-db5ec308d60f4f10aaaef4b0bafd4db92024-03-14T07:28:33ZengBabes-Bolyai University, Cluj-NapocaTransylvanian Review of Administrative Sciences1842-28452014-02-0110414655170Mechanism for Corrective Action on Budget ImbalancesIon Lucian CATRINA0Associate professor, Department of Political Sciences, Dimitrie Cantemir University, Bucharest, Romania Postdoctoral researcher, Academy of Economic Studies, Bucharest, Romania<p>The European Fiscal Compact sets the obligation for the signatory states to establish an automatic mechanism for taking corrective action on budget imbalances. Nevertheless, the European Treaty says nothing about the tools that should be used in order to reach the desired equilibrium of budgets, but only that it should aim at correcting deviations from the medium-term objective or the adjustment path, including their cumulated impact on government debt dynamics. This paper is aiming at showing that each member state has to build the correction mechanism according to the impact of the chosen tools on economic growth and on general government revenues. We will also emphasize that the correction mechanism should be built not only exacerbating the corrective action through spending/ tax based adjustments, but on a high quality package of economic policies as well.</p>https://rtsa.ro/tras/index.php/tras/article/view/154budget deficitgrowthadjustmentsconsolidation. |
| spellingShingle | Ion Lucian CATRINA Mechanism for Corrective Action on Budget Imbalances Transylvanian Review of Administrative Sciences budget deficit growth adjustments consolidation. |
| title | Mechanism for Corrective Action on Budget Imbalances |
| title_full | Mechanism for Corrective Action on Budget Imbalances |
| title_fullStr | Mechanism for Corrective Action on Budget Imbalances |
| title_full_unstemmed | Mechanism for Corrective Action on Budget Imbalances |
| title_short | Mechanism for Corrective Action on Budget Imbalances |
| title_sort | mechanism for corrective action on budget imbalances |
| topic | budget deficit growth adjustments consolidation. |
| url | https://rtsa.ro/tras/index.php/tras/article/view/154 |
| work_keys_str_mv | AT ionluciancatrina mechanismforcorrectiveactiononbudgetimbalances |