Measuring the Impact of Fiscal Policy Shocks in Romania

The aim of this paper is assessing the current state of public finances as well as the impact of the shocks in the economy. For this we determinate the size of spending and revenue using fiscal multipliers, that we computed by means of several methods, using a VAR framework. After analyzing the results, we can conclude that the efficiency of the transmission towards the real economy has diminished the implemented policies effect, during the 2013-2020 years, meaning that structural changes, of raising the efficiency of the public spending structure, are required.