Desantila Muja
- University of Tirana, Faculty of Economy; Ministry of Finance, Albania
Arjan Tushaj
- University of Tirana, Faculty of Economy, Economics Department, Albania
Abstract:
Theoretical and empirical background highlighted the effectiveness of fiscal rules related to their types and institutional strategies through the implementation of state fiscal standards. Effective fiscal policy requires countercyclical actions to sustain policy outcomes. The paper examines the impact of fiscal rules on the political budget cycles, particularly in developing countries like Albania. The adoption of weak fiscal rules has caused the political budget cycle despite other determinants through using data related to the Albanian case. Empirical studies showed that strong fiscal rules produced budgetary discipline and reduced political budget cycles. The qualitative and quantitative effects of appropriate fiscal rules should facilitate the adherence to European Union fiscal standards necessary for accessing the European Union. Albania shall adopt and adhere to the European Union’s fiscal rules upon its accession to the European Union. This full context should be considered by fiscal policymakers, free from distortions caused by political pressure
Tenth International Scientific-Business Conference LIMEN Leadership, Innovation, Management and Economics: Integrated Politics of Research - LIMEN 2024 - International Scientific-Business Conference – LIMEN 2024: Vol 10. Conference Proceedings , December 5, 2024
Conference Proceedings published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia
ISBN: 9788680194929 , ISSN: 26836149 , DOI: 10.31410/LIMEN.2024
Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.
