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Theoretical and Applied Economics
No. 3 / 2006 (498)

About some Methodological Aspects of Budgetary Sustainability

Emil Dinga
Universitatea "Dimitrie Cantemir", Bucuresti

Abstract. This paper is aimed to debate some conceptual and methodological issues concerning the designing and analyzing of the public budget. In the context, the issue of the necessary distinction between the target-objectives and the operational variables in the process of designing the public budget is approached as well as the problem of ensuring the constancy (along the indifference curve) of the fiscal revenues. Some questions concerning the spillovers generated by the designing the public budget are also answered: the correlation between the absolute and relative dynamics of the GDP, the analytical condition to stimulate the entering of the official economy by the underground economy, the lag which is associated with the reaction of the tax base to the fiscal relaxation, the quantifying of the collecting degree of the public revenues, the analytical condition to reach a done weight of the budget over the GDP. All the mentioned issues are treated in a technical way in order to offer to analysts and to decision makers either useful suggestions or criticism base.

Keywords: target-objective; sustenability; indifference curve of the public revenues; collecting degree; gradient; tax base; fiscal relaxation; lag; reaction function.

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