Romania’s Budget Deficit Between Resource and Fiscal Burden
Given the rise in Romania’s budget deficit beyond the limits set by the Stability and Growth Pact, as well as the current political climate, we aim in this article to analyse the deficit’s evolution in recent years. This analysis is linked to key factors affecting the deficit, such as inflation and...
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| Format: | Article |
| Language: | English |
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Institutul de Studii Financiare
2025-05-01
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| Series: | Revista de Studii Financiare |
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| Online Access: | https://revista.isfin.ro/wp-content/uploads/2025/01/3.-Condea-B-et.pdf |
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| author | Bogdan-Virgil Condea Daniela Haranguș Emima-Florentina Condea |
| author_facet | Bogdan-Virgil Condea Daniela Haranguș Emima-Florentina Condea |
| author_sort | Bogdan-Virgil Condea |
| collection | DOAJ |
| description | Given the rise in Romania’s budget deficit beyond the limits set by the Stability and Growth Pact, as well as the current political climate, we aim in this article to analyse the deficit’s evolution in recent years. This analysis is linked to key factors affecting the deficit, such as inflation and interest rates.
We chose to correlate the budget deficit with inflation because an increase in inflation leads to a larger deficit by impacting government spending. It is also important to examine the types of expenditures that have driven the deficit up, as a deficit can either serve as an additional economic resource—if used for investments—or become a burden if directed towards political, socialist, or corrupt purposes.
Since the deficit is financed through borrowing, rising interest rates negatively impact it by driving up the cost of domestic loans. This study may be valuable for financial analysts in public institutions and potential investors, as the country’s economic situation plays a crucial role in investment decisions. |
| format | Article |
| id | doaj-art-bfd6a740cea54a86b1df207b0014bca6 |
| institution | Kabale University |
| issn | 2537-3714 2559-1347 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Institutul de Studii Financiare |
| record_format | Article |
| series | Revista de Studii Financiare |
| spelling | doaj-art-bfd6a740cea54a86b1df207b0014bca62025-08-20T03:35:32ZengInstitutul de Studii FinanciareRevista de Studii Financiare2537-37142559-13472025-05-011018617210.55654/JFS.2025.10.18.03Romania’s Budget Deficit Between Resource and Fiscal BurdenBogdan-Virgil Condea0Daniela Haranguș1Emima-Florentina Condea2Aurel Vlaicu University of Arad, Arad, RomaniaAurel Vlaicu University of Arad, Arad, RomaniaAurel Vlaicu University of Arad, Arad, RomaniaGiven the rise in Romania’s budget deficit beyond the limits set by the Stability and Growth Pact, as well as the current political climate, we aim in this article to analyse the deficit’s evolution in recent years. This analysis is linked to key factors affecting the deficit, such as inflation and interest rates. We chose to correlate the budget deficit with inflation because an increase in inflation leads to a larger deficit by impacting government spending. It is also important to examine the types of expenditures that have driven the deficit up, as a deficit can either serve as an additional economic resource—if used for investments—or become a burden if directed towards political, socialist, or corrupt purposes. Since the deficit is financed through borrowing, rising interest rates negatively impact it by driving up the cost of domestic loans. This study may be valuable for financial analysts in public institutions and potential investors, as the country’s economic situation plays a crucial role in investment decisions.https://revista.isfin.ro/wp-content/uploads/2025/01/3.-Condea-B-et.pdfbudget deficitbudget expendituresfinancial policiesinflation rateinterest rate |
| spellingShingle | Bogdan-Virgil Condea Daniela Haranguș Emima-Florentina Condea Romania’s Budget Deficit Between Resource and Fiscal Burden Revista de Studii Financiare budget deficit budget expenditures financial policies inflation rate interest rate |
| title | Romania’s Budget Deficit Between Resource and Fiscal Burden |
| title_full | Romania’s Budget Deficit Between Resource and Fiscal Burden |
| title_fullStr | Romania’s Budget Deficit Between Resource and Fiscal Burden |
| title_full_unstemmed | Romania’s Budget Deficit Between Resource and Fiscal Burden |
| title_short | Romania’s Budget Deficit Between Resource and Fiscal Burden |
| title_sort | romania s budget deficit between resource and fiscal burden |
| topic | budget deficit budget expenditures financial policies inflation rate interest rate |
| url | https://revista.isfin.ro/wp-content/uploads/2025/01/3.-Condea-B-et.pdf |
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