Fiscal instruments through the impact of macroeconomic and structural factors and parameters of the market economy

Abstract

The existence of a functioning market economy is a prerequisite for the Republic of Moldova to successfully develop its capacity to cope with competitive pressure and market forces within the EU. Therefore, at the beginning of the transition period, when the creation and reformation of the public expenditure, taxes, and tax systems was sought in order to ensure their compatibility with the market economy mechanisms along with the changes in the structures of the financial institutions and the national public budget, the functions of the fiscal policy were reasonably focused on the priority role of ensuring the main governmental functions. Over the next few years, after the overall restructuring of the fiscal system, its mechanisms had different effects from what it was expected, in the conditions of a management that proved not to be performing well. This article, in fact, involves dealing with a very complex issue and with numerous and varied interdependencies on the fiscal instruments and the functionality of the national economy.