THE IMPLICATIONS OF ECONOMIC THEORIES IN FISCAL POLICY IN TERMS OF GOVERNMENT EXPENDITURES

Abstract

The economic theories are considered desideratum in identifying the main problems of ensuring fiscal sustainability. The present study is a theoretical one and its purpose is to make an in-depth analysis of the economic theories that were imposed in determining the instruments for applying fiscal policies, focusing in particular on the implications brought by government expenditures. Thus, results revealed that the economic theories will remain only a foundation in the application of fiscal policies, and the most important aspect regarding the identification of the economic reality is given by its in-depth study.