Abstract. Adequate capitalization of non-financial companies represents one of the main vulnerabilities of the Romanian economy. Estimating its impact on macroeconomic variables could give hints about how transmission mechanisms of fiscal and monetary policies as well as financial stability could be strengthened. Using empirical evidence for Romania, in the period 2009-2024, the paper investigates the relationship between capitalization needs, economic growth and budget deficit and shows that by reducing undercapitalization, budget deficit could decrease by around 0.3-0.4 percentage points – non-ESA2010/consolidation effects, operating directly through higher taxes of undercapitalized companies and indirectly through second-round effects of more buoyant economic growth. Moreover, it is proved that adequately capitalized firms are more resilient, less dependent on external financing, and better able to sustain investment and absorb shocks. Strengthening corporate capital buffers may therefore support policy effectiveness, macroeconomic resilience, and sustainable economic growth.

Keywords: companies’ capitalization, transmission mechanism, economic growth, budget deficit.