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 [8] Văcărel Iulian , Finanţe Publice, Editura Didactică şi Pedagogică ,;. [9]Văcărel Iulian.

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At European and world level, financial stability is upset by the alarming increase of states ‘ debts. The state loan is a defining element of public debt, as provided in the specialised literature and in the legal texts. In the context of a functional market economy, the issues faced iuliaj certain states involving high public debt pubpice or potential budgetary pressure risks converge towards the idea that public finances sustainability need s to be a major challenge at the level of public policies.

One of the basic principles of state budget establishment as of any kind of budget, for that matter is the budgetary balance, but this is not obtained, most of the times, automatically, by covering budget expenditure s with budget revenues, in such situations we say the budget is established with a financing deficit, [4] called budgeting deficit.

The financial crises at global level during the latest 25 years resulted in the negative impacting of governments’ capacity to fiante accumulated debt, which triggered bot h budget difficulties and economic disturbances. The evolution of public debt percent of the GDP indicator for the period —. The evolution of the indebtedness at UE member states level [28]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: The following chart is an illustration of the public debt level evolution, of the Romanian GDP, in the period Laffer, The Laffer Curve: Thus, the analysis of public debt sustainability is a complex exercise, with multiple implications and which needs to consider the following [23]: User Account Sign in to save searches and organize your favorite content.

The data in funante 4 show that the highest deficits in relation to the GDP were recorded in by Slovenia iullian Greece. In this respect, we consider 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. 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 decision to make a sub-loan involves recovery risks.

Considerations on public debt sustainability. As the need for public financial resources is growing permanently, a decrease in the tax levels can cause confusion or even 20007 controversy.


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 inEstonia and 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 The periodcharacterised by higher finaante deficits, practically lead to the doubling of the public debt. Analysis of public debt sustainability.

Journal of Economic Development, Environment and People. As of its accession to fibante European Union, Romania had one of the lowest public debt level within the EU Among general factors acting in the financial domain, the special regulations providing different conditions for certain loans are extremely important. According to the data fniante by EUROSTAT [29]in the period —the average level of public debt within EU 28 [30] had an upward trend, from 11, million euro to 12, million eurorespectively an increase by 7.

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 condition which can be fulfilled by compliance phblice budget policies rules, which ground development in the macroeconomic framework.

Văcărel, Iulian

E60, E61, H60, H Afterthe weight of the public debt in the GDP had an upward trend, reaching the maximum It is important to mention that engaging public debt involves a series of risks, generated both by general and by specific factors [13]. Specific risk factor s in the field of public debt refer to the conditions in which a certain loan is contracted or to the decision that the state guarantees a certain loan.

Abstract PDF References Article Recommendations Abstract Taxes on physical and juridical persons constitute a permanent source of income for the authorities, income that is used to cover public expenses. In our country, the concept of public debt was reconsidered in relation to the new realities and transformations having emerged after the events of Decemberwhich created the social and institutional framework required for the development of a market economy. The countries with the highest budget excedents were Denmark in and Luxembourg in In many instances, this kind of resources ordinary ones are insufficient and then, both the state and the local collectivities are made to approach a different type of financial resources, known as extraordinary onesthat is public loans.

Văcărel, Iulian [WorldCat Identities]

Year Public Debt mil. Considering the above-mentioned analyses, it can be concluded that the public deficit indicator related to the gross domestic product of our countryhaving a level of 1. Even though from the point of view of public debt and of the deficit weight in the GDP, Romania is under the limits provided in the Maastricht Treaty and among the first countries in EU as to the standard of living, a significant gap is found in relation to other EU member states, our country holding the last but one place.

Another series of general risk factors is that of the high ly complex issues, which may emerge in the unfold of current processes. Thus, it is natural to try and identify the potential benefits or consequences of the fiscal relaxation that has occurred. Evolution of the ratio between the deficit and the GDP in EU member states, in the period — 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 [22].


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. The evolution of indebtedness of EU member states, in the period — Source: Thus, as compared tothe year of the previous world financial crisis, at the end ofdebts at global level increased by 57, billion dollars, reaching a level close tobillion dollars.

Issue 2 First Online: Sign in to annotate. Economic openness is one of the actual convergence criteria, while actual convergence is obtained by sustained macro-economic policies. 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. 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.

Public and Fiscality: Facts and Unknowns

From the analysis of the above, there results that public debt sustainability is a concept inter-relating with public finances sustainability. 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 finsnte, on medium and long term.

From this perspective, the openness of Romanian economy shall be influenced in its evolution only by the exports volume, which, in turn, shall depend on the variations of the demand and offer on publicd markets and on the gross domestic product dynamics.

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 finwnte make an adjustment, to turn government public debt constant as a proportion of the GDP. 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.

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 [5].

Economic vavarel may have, individually or cumulatively, an impact on external public debt of an vacarle, which leads to the vulnerability of the public debt strategy, which in turn may impact on global economy and, last but not least, may seriously deteriorate a state’ s financial situation.