The Importance of Monitoring Public Finances. Why Efficiency Matters and How the Population is Directly Affected by the State's Decisions
The Importance of Monitoring Public Finances. Why Efficiency Matters and How the Population is Directly Affected by the State's Decisions

Author(s): Seicarescu Lavinia, Naty Stoica, Lorena Strugariu
Subject(s): Economy, Business Economy / Management, Public Finances, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: public finances; tax structure; public spending and debt sustainability; public debt; economic vulnerabilities; economy; economic models
Summary/Abstract: The analysis of public finances in Estonia, Cyprus and Belgium highlights significant differences in the tax structure, public spending and debt sustainability. Estonia stands out for its prudent fiscal policy, with the lowest level of public debt in the EU. Cyprus, hit by the 2013 financial crisis, has implemented reforms to stabilise finances but still faces economic vulnerabilities. Belgium, with a large public sector, has high public debt but benefits from a diversified economy. Taxation is lower in Estonia, attracting investment, while Belgium has higher taxes to support social services. Cyprus adopts a mixed strategy, with favourable taxes for companies. The differences reflect distinct economic models and varying approaches to financial sustainability.

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