FISCAL SUSTAINABILITY – AS AN ELEMENT GENERATING FISCAL PERFORMANCE

Abstract

Sustainability is the process which can satisfy the current economical and social needs, without affecting the resources of the future generations.It is an ideal and reaching it cannot be put in practice, except through a durable concept of growth, based on three pylons: economical, environmental and social.Thus, a system's sustainability represents: a quality of the sistem to maintain defining parameters on the right trajectory, in an anticipative interval, in a preset time window and a space of accesibility.Choosing a stronger fiscal target is imperious necessary and could lead to smaller solvency. There are multiple instruments to analyze fiscal sustainability.The sustainability of an economy and its vulnerabilities to new exogenous shocks (like Covid -19 pandemic) should be of big interest in decisional factors.To evaluate the fiscal sustainability we need to keep in mind both actual and potential level of public debt.Some resolutions adopted in the past proved to be unsustainable because of long term consequences.Fiscal sustainability can be determined in two steps: confirmation of an existing challenge and establishing the nature of the challenge. This must be evaluated taking into consideration both factors and indicators

Keywords

• sustainability
• fiscal policy
• budgetary balance
• indicators of sustainability.