THE EVOLUTION OF PUBLIC DEBT AND THE COMPARISON WITH ITS WEIGHT IN ACTUAL GDP

Abstract

Analyzing this problem of increasing or decreasing the public debt in Romania we have found that there are many debates between the contemporary economists regarding the economic development in this way. Most of the work is summed up at the very low level of budgetary revenues collected in recent years and the steady increase of budget expenditures. Public debt was and is well below the 60% of GDP ceiling set by the Maastricht Treaty. But there is a trend of economic thinking that advocates raising public debt, but which can be found in productive investments conducive to job creation and GDP growth. Our study shows that although we have quite large economic growth, however, in Romania, the lowest budget revenues in Europe are registered, due to a rise in public debt, both calculated as a percentage of GDP. This state of the economy may be the result of an asymmetry in Romania's European integration policy, the need to meet the nominal convergence criteria and the real convergence indicators that are so important to enter the eurozone. On the background of statistical data, through heuristic research, we set out to find out how best it is to roll out year on year increasing public debt for the sustainable development of the economy, or to reduce public debt in order not to leave a burden too to the future generations and to find other ways of development.

Keywords

• public debt
• GDP
• government gross debt