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Budgetary Deficit and Its Effects on Public Debt

Author

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  • Gabriela Dobrotă

    (Constantin Brâncusi University of Târgu Jiu)

Abstract

Funding for the various economic or social objectives is performed frequently from borrowed resources. Unfavorable ratio between revenues and expenditures is often the effect of the worsening economic environment and of the adoption of fiscal inadequate measures. The deepening of the budget deficit has been accompanied by the growth in public debt and vice versa, in the context of rising public debt. The paper highlights aspects of the evolution of budget deficit and public debt in Romania, being conducted and a comparison with other European countries. The application of descriptive statistical methods allowed the identification of a link between the budget deficit in times of economic crisis and raising of the taxes or resorting to loans, with reorientation towards the domestic market.

Suggested Citation

  • Gabriela Dobrotă, 2016. "Budgetary Deficit and Its Effects on Public Debt," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 467-470, February.
    • Handle: RePEc:ovi:oviste:v:xvi:y:2016:i:2:p:467-470
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    References listed on IDEAS

    as
    1. Stiglitz, Joseph & Ocampo, Jose Antonio & Spiegel, Shari & Ffrench-Davis, Ricardo & Nayyar, Deepak, 2006. "Stability with Growth: Macroeconomics, Liberalization and Development," OUP Catalogue, Oxford University Press, number 9780199288144, December.
    2. Mariam Camarero & Josep Lluís Carrion-i-Silvestre & Cecilio Tamarit, 2013. "“The relationship between debt level and fiscal sustainability in OECD countries”," AQR Working Papers 201307, University of Barcelona, Regional Quantitative Analysis Group, revised Sep 2013.
    3. Tešić, Aleksandra & Ilić, Dragan & Đelić, Anastazija Tanja, 2014. "Consequences Of Fiscal Deficit And Public Debt In Financing The Public Sector," Economics of Agriculture, Institute of Agricultural Economics, vol. 61(1), pages 1-18, March.
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    More about this item

    Keywords

    public deficit; public debt; fiscal policy;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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