The role of budgetary-fiscal policy in reducing revenue inequality in the Republic of Moldova

Abstract

Income inequality is a current socio-economic problem both in the Republic of Moldova and in several countries. The implementation of tools to mitigate inequalities is a condition for ensuring the national security of the Republic of Moldova and sustainable development throughout the world. Fiscal policy plays an important role in redistributing income in the economy and thereby mitigating the rise in income inequality. The relatively low redistributive effect of direct taxes and social transfers implies changes in the budget-fiscal policy in the Republic of Moldova. Therefore, some budgetary-fiscal policy measures are proposed in order to mitigate income inequality in the Republic of Moldova. CZU: 336.02:369.014.3(478); JEL: E62, I3; DOI: https://doi.org/10.53486/cike2022.11