The financial-economic crisis and public debt sustainability

Florina-Maria Bobes ()
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Florina-Maria Bobes: Lucian Blaga University of Sibiu - Faculty of Economics

HOLISTICA Journal of Business and Public Administration, 2015, vol. 6, issue 1, 116-126

Abstract: This paper aims to assess the sustainability of the public debt in the context of the Romanian economy evolution to find out to what extent the government meets its commitments, having as reference a certain trajectory of revenues and expenses, and also certain assumptions of the main macroeconomic variables. Thus, the trend of increasing the public debt from 13.4% of GDP in 2008 to 42.47% of GDP in 2013 was determined both as a result of the economic and financial crisis, and also because of practicing a fiscal-budgetary policy that was unsustainable in the pre-crisis period. In such a context, in the paper, through the public debt sustainability performance audit, with the help of a specific group of indicators we follow and reflect the sustainability in terms of solvency risk. Last but not least, through the design of these indicators we will also analyze the link between the external public debt reported to the incomes from goods exports and services and the influence of this indicator over the repayment capacity of Romania.

Keywords: sustainability; public debt; gross domestic product (search for similar items in EconPapers)
JEL-codes: G01 G18 H63 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:urn:urnste:v:6:y:2015:i:1:p:116-126

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