THE GOVERNMENT EXPENDITURES IN THE TIMES OF FINANCIAL CRISIS

NADEZHDA BLAGOEVA

 

Abstract

The article is intended to study the role of the government and the dynamics of its expenditures in the period 1996 - 2011. Special attention is paid on the fiscal spending in the years of the current financial crisis in EU countries and Bulgaria. The results show that in Bulgaria the government expenditures as a share of GDP are the lowest in EU 27. In the same time our country is among those with lowest level of deficit and debt as share in GDP. Therefore it is possible for our government to increase them for a few years in order to support the national economy to overcome the consequences of the financial crisis.

Key words

government expenditures, financial crisis, economic growth

References

Hall,R. By How Much Does GDP Rise if Government Buys More Output? NBER Working Paper No 15496, 2009

Freyson, L. General Government Expenditure Trends 2005 - 2010: EU countries compared, Eurostat Statistics in focus 42/2011

Eurostat. Statistics, http://epp.eurostat.ec.europa.eu/

 

Full Text: PDF (Bulgarian)