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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Afterthe weight of the public debt in the GDP had an upward trend, reaching the maximum 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.

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 In this context, with the Romanian population permanently decreasing, while the volume of the country’s public debt increased on a continual, there follows that the population indebtedness had an alert rhythm, reaching at the end of the value of 14, The evolution of public debt percent of the GDP indicator for the period —Source: Volume 4, Issue 4, Public finances sustainabilityfrom this perspective [16]involves Government being able to manage, in the medium and long run, risks or unforeseen situations, without being forced to operate significant adjustments of the expenditures, revenues or budgetary deficit swith destabilising effects from the economic and social point of view.

Public and Fiscality: Facts and Unknowns

Another series of general risk factors is that of the high ly complex issues, which may emerge in the unfold of current processes. 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]. Current economic context of public debt. Public debt managers operate nowadays in sophisticated and complex financial environment sand a global capital market can generate numerous benefits for example, easier access to a larger capital portfolio at a lower cost, more effective internal capital markets and the possibility to better adapt risk through new financial instruments.

The Romanian economy, as a component part of world economy, displays the same trends, respectively an increase of public debt in a rhythm superior to the economic growth one, so that public finances sustainability needs to be a major challenge at the level of public policies [21]. Even though piblice the point of view of public debt finange 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 vacxrel other EU member states, our country holding the last but one place.

Considering this situation, the adequate policies to tackle public finances sustainability need to have, as a launching base, the overall strategy of the European Union, focused on the three component parts, namely abatement of public debt, increasing productivity and employment and last but not least, reforming the pension and healthcare systems.


Văcărel, Iulian [WorldCat Identities]

The decision to make a sub-loan involves recovery risks. Among general factors acting in the financial domain, the special regulations providing different conditions for certain loans are extremely important.

According to the data listed 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. 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 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: 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.

Economic openness is one of the actual convergence criteria, while actual convergence is obtained by sustained macro-economic policies. The evolution of public debt percent of the GDP indicator for the period —. 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.

Evolution of the ratio between the deficit and the GDP in EU member states, in the period — Thus, the analysis of public debt sustainability is a complex exercise, with multiple implications and which needs to consider the following [23]: Iuliqn analysis of this data shows that inas compared topublic debt went up in a rhythm superior to the economic growth one, a situation in which public finances sustainability needs to be a major challenge at the level of public policies.

To ensure sustainable levels of public debt it is important that EU member states understand certain medium term budgetary finxnte, which would result in a descending trend of public debt, through strict compliance with vzcarel policy [22].

Current economic context of public debt The financial crises at global level during the latest 25 years resulted in the negative impacting of governments’ capacity finannte reimburse accumulated debt, which triggered bot h budget difficulties and economic disturbances.

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.

Văcărel, Iulian

The analysis of the above-mentioned data shows that, even if the indebtedness of Romania continues to be lower tha n the indebtedness of other European national economies, its tendency to accelerate is worrying, which makes it necessary to analyse sustainability of public debt and of budget deficits. The increase of gross domestic product may be reached by abating taxation pressure over economyespecially over the productive sector of all economic branchesas well as by increasing the collection degree of taxes and feeswhich can generate financial resources, funds which need to be oriented with priority towards investment making in the production sector of the Romanian economy.


Journal of Economic Development, Environment and People. Inthe deficit exceeded Furthermore, legal provisions [15] established certain principles grounding the implementation of an efficient management of public finances, respectively of the public debt which would serve long term public interest, of an economic prosperity, as well as to anchor fiscal-budgetary policies in a sustainable framework.

The evolution of indebtedness of EU member states, in the period — The evolution of indebtedness of EU member states, in the period — Source: Population of Romania mil.

Public and Fiscality: Facts and Unknowns : International conference KNOWLEDGE-BASED ORGANIZATION

In this context, states’ needs are covered, to the greatest extent, from taxes, fees, contributions, take-offs, which the state collects from tax payers. 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.

As of its accession to the European Union, Romania had one of the lowest public debt level within the EU In the context of a facarel market economy, the issues faced by certain states involving high public debt levels 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.

Publixe, two member states had budget excedents on the overall analysed period, respectively Germany with a peak in and Luxembourg with a peak in Structural factor s may be, finanre certain instances, risk generators when the public debt management system component parts are not sufficiently regulated. Thus, as compared tothe year of the previous world vscarel crisis, at the end ofdebts at global level increased by 57, billion dollars, reaching a level close tobillion dollars.

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

The relation between the GDP and budgetary deficit highlights to what extent economic development is sustainab l efrom the perspective of resources and debts. It is important to mention that engaging public debt involves a series of risks, generated both by general and by specific factors [13].

The data in figure 4 show that the highest deficits in relation to the GDP were recorded in by Slovenia and Greece. 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 with budget policies rules, which ground development in the macroeconomic framework.

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 position, on medium and long term.