Fiscal imbalance

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Fiscal imbalance - the opposite of fiscal equilibrium, most often associated with a situation in which public finance expenditure is not covered by the sector's (budget deficit). The persisting budget deficits are reflected in the rise of public debt.

The scale of fiscal imbalances is influenced by the cyclical cycle, systemic and structural factors (including tax policy, indexation mechanisms of public expenditure, institutional framework of the public finance sector, including fiscal rules).

The term "fiscal imbalance" is also used in the context of transferring public tasks from the government sector to the local government sector (decentralization). In the literature of the subject there is an imbalance in this field: Bibliography

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