The Impact of Fiscal Policy on Economic Growth in the Republic of Moldova

Abstract

In a world that changes day by day, the capability to maintain the stability in the economical area, making sure that all posible tools and approches are taken into account, is pivotal for a prosperous development of the general condition of the country. Being guided by efficiency, the main purpose of the fiscal policy is to reduce the budget deficit, to combat tax evasion and to minimize the public debt. Furthermore, there are also more general aims like social welfare, combating poverty and reducing unemployment. In additional, the 2024 objectives include as well fiscal instruments for enticing and maintaining skilled labor, reviewing the mechanisms for calculating and paying taxes and fees so that it simplifies and clarifies the legislative framework, deters the "salary in an envelope" phenomenon, incorporates measures to improve fiscal administration, etc. Other budgetary policy measures aim to clarify existing ambivalent situations in the budgetary-fiscal legislation and bring more comprehensibility to its acknowledgement and application. Likewise, new projects, foreseed for the fiscal policy, aims to continue the process of syncing national legislation with European Union practices, primarily in the part affiliated to VAT and excise duties. In this order of ideas, the main purpose of this reserach is to expose date, using the descriptive, analytical, comparative, graphic, tabular, inductive and deductive method, that describe the fiscal policy in the Republic of Moldova in the range of 2019-2023, resulted in a gradual increase in the economical indicators. CZU: 336.02:330.35(478); JEL: G18