Aspects Regarding the Evolution of Romania’s Public Debt in the Context of its Integration within The E.U. and of Worldwide Financial Crisis
Governmental public debt is determined by the State’s financial needs that display a permanent character. The State’s financial needs are covered by cashed incomes coming from taxes and other contributions. The State’s incomes and the opportunity of obtaining them are almost never enough large in order to cover all the expenditures of a period (as a rule, one year). Such a lack of resources determines the turning up of certain budget deficits whose covering is done owing to internal or external loans. All the sums loaned and not refunded at a certain moment determines the appearance of the public debt of a country. Public debt consists in the total sums borrowed by the central public authorities, by the administrative and territory units, and contracted or guaranteed by the other public entities, from natural or juridical persons on the internal market or from abroad and not refunded at a certain moment. Governmental public debt represents the State’s total financial obligations at a certain moment coming from refunding financings directly contracted or guaranteed by the Government on financial markets. During a period when most of the countries have to face the challenges determined by the lack of sustaining internal and external public debt, we consider that the problems generated by administrating public debt mainly focus upon the impact of the present financial crisis upon the level of the public debt and upon the manner of administrating it.
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