THE IMPACT OF THE ECONOMIC SHOCKS ON THE CENTRAL GOVERNMENT DEBT SUSTAINABILITY OF THE REPUBLIC OF MOLDOVA

Abstract

Nowadays, in the rapid process of economic development, where the continuous progress of innovation and knowledge goes beyond any set limits, governments are involved in a hybrid war of gaining competitive advantages, successes that ultimately enable the improvement of the minimum standard of living, creating more jobs, developing infra-structure, etc. [7] For these purposes, the governments mostly carry out expenditures that exceed income, so, missing resources are lent from borrowers or purchased from financial markets. To know the vulnerabilities and dangers that persist on the state debt sustainability of the Republic of Moldova gives the government the opportunity to act and make certain decisions in order to improve the system of public finances, to promote sustainable financial policies and, ultimately, to develop the economy of the country.

Keywords

• Central Government Debt
• Primary Balance of the State Budget
• impact