The present paper comprises relevant aspects regarding the state aid and budgetary policy. The aim of the study is to examine to what extent state aid measures that distort competition can affect the budgetary deficit. In order to highlight the relation between the two indicators, we will focus on the following elements that will be developed separately:
1. State aid: concept, types of measures, policy developments;
2. General consolidated budgetary deficit;
3. Correlation between state aid and budgetary deficit in Romania and European Union.
state aid, public deficit, public budgets