The selected data are for the 1996-2011 period and represent macroeconomic indicators like fiscal variables and growth variables (public expenditures, public revenues, real GDP growth rate, GDP per capita in constant price – extracted from AMECO database) and qualitative indicators (voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, control of Corruption – extracted from World Bank database; and Corruption Perception Index - data source Transparency International).
In our analysis we used specific methods like cluster analysis, econometric regressions, probit model, graphic analysis. This methods allow us to evaluate the strategies used for reducing the deficit and to identify the determinant factors of success for fiscal adjustment episodes – the necessity, the size and the composition of the fiscal adjustment.
The obtained results permit us to conclude that significant fiscal adjustments lead to sustainable deficit reduction. Even if episodes of fiscal adjustment can generate political costs, significant adjustments are credible signals of commitment of the authorities to address budgetary imbalances, which could enhance their success. At the same time, adjustments made through expenses have a higher probability of success. Moreover, we can conclude that the success of fiscal adjustment is positively influenced by the evolution of economic growth.
Key words: strategies for fiscal adjustments, budgetary imbalances, public revenues and expenses, sustainable deficit, excommunist countries.