An analysis of the government revenue–expenditure nexus: A wavelet approach for the Romanian case

The turbulent economic environment of the last decades, social effects associated with responsibilities state to support development green economy, and increase involvement in sustainable inclusion make it necessary budget revenues. Evaluating link between government revenues expenditures is a complex approach defined by several factors related tax compliance perception efficiency expenditure. In addition, recent endogenous exogenous shocks have considerably influenced fundamentals long-term fiscal policy balancing. type relationship revenue expenditure analyzed identify leading lagging variables, wavelet monthly data for Romania 2000–2021 are used. various periods, led expenditure, or vice versa. spend–tax tax–spend hypotheses confirmed different periods. analysis highlights intervals behavioral asymmetry, which helps monitor implementation policy. Also, results could represent starting point outlining measures area.