CORRELATION BETWEEN ROMANIA’S PUBLIC DEBT AND SOME MACROECONOMIC VARIABLES

Abstract

Public debt represents all internal and external financial obligations of the state, at a time, from the loans contracted directly or guaranteed by the Government through the Ministry of Finance, or local authorities from various lenders, natural or legal persons resident or non- in Romania. Having regard of the fast pace of growth of public revenues by the growth of social needs it is absolutely necessary the effective use of public money and identify new resources to be allocated efficiently and promptly to the continually growing of social needs. The need for internal or external public loans, ,is a reality and it is seen in more and more countries and the political due at the central level is to use these loans especially for productive capital growth, of which income should be returned both the loans and the interest rates.