Budgetary Deficit and Its Effects on Public Debt

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