Analysing the fiscal impact on general well-being in the CEE states

The study explores the design process of a fiscal system and highlights its impact on the overall welfare of society in the six European Union countries located in Central and Eastern Europe (CEE). The main objective is to understand the interaction between fiscal policy and the macroeconomic indicators and to study the impact of taxes on the quality of life and social well-being. The research methodology entails a descriptive and comparative analysis of statistical data spanning a 16-year period, from 2005 to 2020, marking the onset of the Covid-19 pandemic. The findings indicate that VAT is the primary source of fiscal revenue in CEE, with an average fiscal burden of over 7% of GDP. The research found that there are complex interdependencies between the fiscal system and the general welfare of society. For example, income taxes are associated with slow economic growth, and social contributions can influence employment rates. Romania is in a less favorable situation compared to other countries in the region, but still, a general trend of increasing human development and poverty reduction is observed. Additionally, it was found that international migration and perceptions of corruption can influence fiscal policy and general well-being. The research results emphasize the need for a balanced fiscal policy to support social and economic progress.