But, by this measure the. Iulian Vacarel and the co-authors, „ Finante publice ”, The 6-th Edition, Publishing house Didactica si Pedagogica,. Bucharest, 64/ on public debt, approved by Government Decision no. .. Văcărel Iulian, (coordonator), Finanţe Publice, Editura Didactică şi Pedagogică, București. Finantele publice sunt necesare, în mod subiectiv şi obiectiv  Văcărel Iulian , Finanţe Publice, Editura Didactică şi Pedagogică ,;. Văcărel Iulian.
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The periodcharacterised by higher budgetary deficits, practically lead to the doubling of the public debt.
To ensure sustainable levels of public debt it is important that EU member states understand certain medium term budgetary objectives, which would result in a descending trend of public debt, through strict compliance with budgetary policy .
In modern times, these issues are divided into four large categories: Public finances sustainabilityfrom this perspective involves Government being able to manage, in the medium and long run, risks or unforeseen situations, without being forced to operate significant adjustments of the expenditures, revenues or budgetary deficit swith destabilising effects from the economic and social point of view.
Laffer, The Laffer Curve: In this context, with the Romanian population permanently decreasing, while the volume of the country’s public debt increased on a continual, there follows that the population indebtedness had an alert rhythm, reaching at the end of the value of 14, The analysis of public debt sustainability is meant to offer answers and solutions relating to the capacity of a government to maintain iuljan same direction of expenditures and revenues or, in case they have to make an adjustment, to turn government public debt constant as a proportion of the GDP.
The evolution of indebtedness of EU member states, in the period — Source: Rinante analysis of this data shows that inas compared topublic debt went up in a rhythm superior to the economic growth one, a situation in which public finances sustainability needs to be a major challenge at the level of public policies. Evolution of the ratio iulia the deficit and the GDP in EU member states, in the period — Thus, it is natural to try and identify the potential benefits or consequences of the fiscal relaxation that has occurred.
Afterthe weight of the public debt in the GDP had an upward trend, reaching the maximum T he other 12 EU member states had higher deficits in as compared to Analysis of public debt sustainability. In this respect, we vaxarel that the moment Romania fulfils the economic growth conditions, it will benefit from acquiring the statute of a member state of the European Monetary Unionwhich will result in an enhancement of the country’s economic opening degree and which will influence the gross domestic product dynamics.
From this perspective, the openness of Romanian economy shall be influenced in its evolution only by the exports volume, which, finamte turn, shall depend on the variations of the demand and offer on international markets and on the gross domestic product dynamics. The following chart is an illustration of the public debt level evolution, of the Romanian GDP, in the period Current economic context of public debt The financial crises at global level 22007 the latest 25 years resulted in the negative impacting of governments’ capacity to reimburse accumulated debt, which triggered bot h budget difficulties and economic disturbances.
Moreover, it can be established if there is a possibility to replace eventual losses of resources from the targeted taxpayers with tax charges that affect other financial actors.
Recent examples taken from emerging economies showed that shocks may turn into financial crises, which can make public management difficult and have significant budgetary consequences. Furthermore, legal provisions  established certain principles grounding the implementation of an efficient management of public finances, respectively of the public debt which would serve long term public interest, of an economic prosperity, as well as to anchor fiscal-budgetary policies in a sustainable framework.
However, changes brought in the current fiscal legislation have brought a series of decreases theoretically substantial of the fiscal obligations owed by the tax payers.
Furthermore, it can be seen that certain significant increases of this indicator were also recorded inrespectively Considering this situation, the adequate policies to tackle public finances sustainability need to have, as a launching base, the overall strategy of the European Union, focused on the three component parts, namely abatement of iulin debt, increasing productivity and employment and last but not least, reforming the pension and healthcare systems.
The evolution of public debt percent of the GDP indicator for the period —. In order to maintain public debt at an acceptable level, it is necessary that the economy of Romania focuses efforts and financial resources to enhance the gross domestic productby developing both the industrial sector through investment in intelligent technologies, which would generate added value, and through the agricultural sector ecological agriculturebut also by developing constructions and services for population.
As of its accession to the European Union, Romania had one of the lowest public vacarep level within the EU The decision to make a sub-loan involves recovery risks. The foreign exchange risk is another relevant issue, which needs to be considered when concluding a foreign currency loan, whether this is conducted on the domestic or the external capital market.
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The evolution of the indebtedness at UE member states level for the period is further presented, in order to offer an overall image and to be in a position to assess the stage reached by Romania, as follows: Public debt managers operate nowadays in sophisticated and complex financial environment sand a global capital market can generate numerous benefits for example, easier access to a larger capital portfolio at a lower cost, more effective internal capital markets and the possibility to better adapt risk through new financial instruments.
Up to now, the public debt notion went through the following defining process : The increase of gross domestic product may be reached by abating taxation pressure over economyespecially over the productive sector of all economic branchesas well as by increasing the collection degree of taxes and feeswhich can generate financial resources, funds which need to be oriented with priority towards investment making in the production sector of the Romanian economy.
Public debt is made of the central administration’ liabilities and includes the following categories: Analysis of public debt sustainability The analysis of public debt sustainability is meant to offer answers and solutions relating to the capacity of a government to maintain the same direction of expenditures and revenues or, in case they have to make an adjustment, to turn government public debt constant as a proportion of the GDP.
The financial crises at global level during the latest 25 years resulted in the negative impacting of governments’ capacity to reimburse accumulated debt, which triggered bot h budget difficulties and economic disturbances. Both state budget deficit and public debt of the state are established in a rather wide sense and without considering al l influence factors which can modify their size during budget execution .
In this context, national institutions having competences in this field are under the obligation to prudently conduct the fiscal-budgetary policy and to manage budgetary resources and liabilities, as well as the fiscal risks so as to grant the sustainability of the fiscal position, on medium and long term. Adequate policies to tackle public finances sustainability challenge s need to be grounded in the overall EU strategy focussed on the three component parts, namely, abatement of public debt, increase of productivity and of employment and reform vaccarel pensions and healthcare systems and the main causes of the problems relating to public finances sustainability confronting various member states.
As compared topublic deficit in relation to the GDP decreased in in 10 member states, the Netherlands and the United Kingdom had the same deficits in as in vxcarel, Estonia pubblice Denmark switched from a deficit in to an excedent inGermany recorded a little higher excedent in than inwhile the excedent of Luxembourg had slightly decreased from 3 until Even though from the point of view of public debt and of the deficit weight in the GDP, Romania is under the limits iulisn in the Maastricht Treaty and among the first countries in EU as to the standard of living, a significant gap is found in relation vvacarel other EU member states, our country holding the last but one place.
Thus, the public debt increase rhythm, at the level of the EU 28, exceeded the econom ic growth rhythm. To ensure reasonably sustainable public debt levels, EU member states need to attain medium term strategic budgetary objectives, that would ensure a downward trend of public debt, a iuljan which can be fulfilled by compliance with budget policies rules, which ground development in the macroeconomic framework.
The evolution of indebtedness of EU member states, in the period —