Canagarajah, SudharshanBrownbridge, MartinPaliu, AncaDumitru, Ionut2012-03-192012-03-192012-01-01https://hdl.handle.net/10986/3213Romania, along with many other countries in the European Union, faces daunting fiscal challenges. Fiscal balances deteriorated sharply following the global economic crisis, forcing Romania to implement a fiscal consolidation that was one of the largest in the European Union, but which may not be sustainable without a recovery of economic growth. Although the ratio of public debt to gross domestic product is still relatively modest, at around 35 percent, long-term fiscal solvency is threatened by the costs of funding the public pension system in the face of adverse demographic shifts over the next 50 years. Because of widespread tax evasion, the tax system in Romania is one of the least efficient in the European Union. Tax reforms that can reduce the amount of tax lost to evasion and fraud could make a major contribution to enhancing fiscal sustainability.CC BY 3.0 IGOACCOUNTINGACCUMULATION OF ARREARSADVERSE CONSEQUENCESANNUAL REPORTARREARSBALANCE SHEETSBASIS POINTSBENEFICIARIESBORROWING COSTSBORROWING REQUIREMENTSBUDGET CONSTRAINTBUDGET DEFICITBUDGETARY RESOURCESCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCDSCENTRAL GOVERNMENTCONTINGENT LIABILITIESCORPORATE INCOME TAXCREDIT RATINGCREDITORCUSTOMS UNIONCUTTING EXPENDITURESDEBT BURDENDEBT CRISISDEBT DYNAMICSDEBT LEVELSDEBT SERVICINGDEBT SERVICING COSTSDEBT SUSTAINABILITYDEBTSDEMOCRACYDEMOGRAPHICDEMOGRAPHIC CHANGEDEMOGRAPHIC CHANGESDEVELOPMENT BANKDOMESTIC CURRENCYDOMESTIC DEMANDDOMESTIC MARKETDOMESTIC SAVINGSECONOMIC CRISISECONOMIC FORECASTECONOMIC GROWTHEMERGING MARKETEMERGING MARKET COUNTRIESENTITLEMENTSEUROBONDEXCHANGE RATEEXPENDITUREEXPENDITURE CUTSEXPENDITURE OBLIGATIONSEXPENDITURESEXPORT GROWTHEXPOSUREEXPOSURE TO RISKFINANCIAL AFFAIRSFINANCIAL CAPACITYFINANCIAL CRISISFINANCIAL PERFORMANCEFINANCIAL STATEMENTSFINANCIAL SUSTAINABILITYFISCAL ADJUSTMENTFISCAL ADMINISTRATIONFISCAL BALANCEFISCAL BALANCESFISCAL CONSOLIDATIONFISCAL COSTSFISCAL CRISISFISCAL DATAFISCAL DEFICITFISCAL DEFICITSFISCAL IMPLICATIONSFISCAL INFORMATIONFISCAL MANAGEMENTFISCAL OBLIGATIONSFISCAL POLICIESFISCAL POLICYFISCAL POSITIONFISCAL PROJECTIONSFISCAL RETRENCHMENTFISCAL STANCEFISCAL STATISTICSFISCAL SUSTAINABILITYFISCAL SYSTEMFIXED INTERESTFIXED INTEREST RATEFOREIGN CURRENCYFOREIGN INVESTORSFOREIGN SHAREFRAUDGENERAL TAXATIONGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT DEFICITSGOVERNMENT REVENUEGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTGROSS PUBLIC DEBTGROWTH RATESHEALTH INSURANCEHOLDINGHUMAN CAPITALIMPLICIT TAXINCOME TAXINCOME TAXESINFORMAL ECONOMYINSURANCEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETINTERNATIONAL MARKETSINVESTOR CONFIDENCEISSUANCELEGAL OBLIGATIONSLEGAL TAX RATELEGAL TAX RATESLOANLOAN GUARANTEESLOCAL BANKSLOCAL GOVERNMENTLOCAL GOVERNMENTSLONG-RUN DEBTLONG-TERM COSTSMACROECONOMIC PROJECTIONSMACROECONOMIC STABILITYMATURITYMATURITY STRUCTUREMEDIUM-TERM FISCAL FRAMEWORKMEDIUM-TERM PROJECTIONSMONETARY FUNDMONETARY UNIONMULTILATERAL LENDERSNATIONAL AGENCYNET WORTHOLD-AGEOLD-AGE PENSIONSOUTPUTOUTPUT GAPOUTSTANDING PUBLIC DEBTPENSIONPENSION EXPENDITURESPENSION FUNDPENSION LAWPENSION REFORMPENSION REFORMSPENSION SCHEMEPENSION SYSTEMPENSION SYSTEMSPENSIONSPERSONAL INCOMEPERSONAL INCOME TAXPORTFOLIOPOVERTY REDUCTIONPRIVATE BANKSPRIVATE PENSIONSPRIVATE SECTORPROGRESSIVE TAXATIONPROVISIONSPUBLICPUBLIC AGENCIESPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC ENTERPRISEPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC PENSIONPUBLIC PENSION SYSTEMPUBLIC PENSIONSPUBLIC POLICYPUBLIC POLICY OBJECTIVESPUBLIC SECTORPUBLIC SECTOR DEFICITSPUBLIC SECTOR WAGESPUBLIC SERVICESPUBLIC SPENDINGRAPID GROWTHREAL GROWTHREAL GROWTH RATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREPLACEMENT RATESRETIREMENT AGERETIREMENT AGESREVENUE COLLECTIONSECURITIESSOCIAL CONTRIBUTIONSSOCIAL INSURANCESOCIAL INSURANCE FUNDSSOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSSOCIAL SECURITY SYSTEMSOCIAL WELFARESOLVENCYSOVEREIGN DEBTSTATE OWNED ENTERPRISESSUSTAINABILITY ANALYSISSUSTAINABLE ECONOMIC GROWTHSUSTAINABLE FISCAL POLICYTAXTAX ADMINISTRATIONTAX BASETAX COLLECTIONSTAX EFFORTTAX EVASIONTAX POLICYTAX RATETAX RATESTAX REVENUETAX SYSTEMTOTAL DEBTUNCERTAINTYWAGE EXPENDITURESWorld Bank10.1596/1813-9450-5927