Paper/Speech Details of Conference Program for the 19th NISPAcee Annual Conference Program Overview Fiscal Policy Author(s) Eugenia Busmachiu Academy of Economic Studies of Moldova Chisinau Republic of Moldova Morozov Boris, Title Fiscal policy in the republic of Moldova File Paper files are available only for conference participants, please login first. Presenter Abstract Abstract: Fiscal policy is a tool used by governments to regulate the economy. Over the years the fiscal system in the Republic of Moldova has undergone significant changes. The tax legislation improvement results that were recorded so far have proved the efficiency of the developed activities and the need to develop forwards, by alignment to international standards and revision of all the performance indicators. The paper begins with a background on Moldova's current economic situation, including a look at some literature on the topic. Then this paper explores the tax characteristics and the factors influencing their evolution. It also reviews the content and results of tax reform in the Republic of Moldova. It is briefly set out the Moldovan tax system main problems and policy direction. After an overview of the tax system, we analyze the principal objectives that country may attempt to achieve through tax policy like some of the basic issues facing tax policy and to outline some key elements that should be considered in designing the best feasible tax structure for the next years. We consider in this paper how our country may in practice best design and develop tax policy at the national and local levels, given the complex economic and political environments it faces. Systematic reviews of the national and international literature permit us to assess the problem of public expenditure and tax policy and the effectiveness of tax policy interventions for increasing budgets revenues. By means of microeconomic and fiscal policy indicators it is demonstrated how the reforms have succeeded in the last years and have affected the real sector of the economy. The impact on income distribution indicates that the reforms have succeeded in reducing distortions without compromising distributional objectives. Lower tax rates on individual revenues and capital income have been influenced the small business development and investment climate. The amnesty basic features are discussed and some conclusions on costs of the amnesty and effectiveness are presented. The paper concludes that there are no actions to guarantee optimum results, so it is important to be flexible and permanently to evaluate the effectiveness of fiscal policy changes in our country. The government must manage the fiscal tools of government spending and taxation to improve the health of the economy. The structure: Introduction, the first part of the paper, presents a theoretical overview of tax policy, tax reforms and instruments and their effects on economic and fiscal performance. Second part provides comparative analyses and tendencies of fiscal policy elements. Third part of the paper includes proposals and direction of tax policy in Moldova. The last part provides conclusion and recommendations. Key words: tax system, revenues, GDP, education, income, tax, international taxes, tax policy tools, economy etc.
