Economic Crises Deepen Country Budget Deficits and Deficits Deepen Economic Crises

Abstract

In this paper we wish to point out that some measures taken by the government to reduce budget deficits in times of economic crisis have the opposite effect, i.e. widening budget deficit. In Romania’s case the measures are focused on increased taxation and reducing public spending instead of stimulating business environment in order to increase GDP. Most time even this increase in taxation and these spending reductions generates revenues reductions, thus deepen the deficit.budget deficits, economic crisis, increased taxation, spending reductions.