The Evolution of Local Public Debt in Romania After 2020

The chronic gap between needs and resources is manifested in contemporary societies and at the level of local administrations. Therefore, they are also obliged to identify new financial resources, so that they can satisfy the general needs of the communities. In addition to the sources attracted, the most important of which is represented by non-reimbursable European funds, local public decision-makers also resort to loan resources, thus constituting the local public debt. This is an instrument that can contribute to the socio-economic development of communities, to the extent that it is contracted, used and managed efficiently, so as to bring future added value. In most countries, including Romania, the management of local public debt is carried out within certain limits and conditions determined by the government factor, local administrations having, in this area, a pre-established decision-making autonomy. The volume of local public debt, its share in the total revenues of these links of the administration, the specific weight of loans in capital expenditures, the annual effort generated by debt are just a few indicators that outline the health of local public finances and that we intend to analyze further.