Implications of the Budget Deficit on the Labour Market in Romania

Abstract

The budget deficit has now become a common phenomenon in many countries, amid a surge in public spending. In Romania, as well as in other developing or developed countries, this topic is one of the most difficult issues facing economic policy. Under the current circumstances of economic activity, where financial needs are more advanced than available funds, budgeting at all levels is one of the primary issues, in particular by maintaining the principle of budgetary balance. Structure and Content of the Article – the article is structured as it follows : introduction, main chapters and the last part which presents the final conclusions concerning the suggested topic (the consequences of budget deficit over the labour market in Romania). The means used to finance the budget deficit, e.g. the increase in fiscality, the decrease in public spending, or the increase of public debt, leave their mark on the evolution of the labour market on both short and long term, as mentioned in the article.

Keywords

• budget deficit
• consolidated budget
• labour market
• public sector debt