Structural balance represents a useful fiscal indicator to evaluate the efficiency of fiscal policy from discretionary point of view, also, giving some relevant insights on long run sustainability. According to estimated results for Romania’s case, it could be noticed only 2 episodes of fiscal adjustment. Based on the size of structural balance from following years, it could be emphasized some inconsistency of Romanian fiscal policy. On long run, the main challenge is related to achieving fiscal sustainability.

fiscal policy, discretionary, structural balance, GDP gap, Hodrick – Prescott filter, fiscal sustainability