Romania’s public debt up to 42.8% of GDP at end-Aug

Romania's public debt rose by another RON 5.8 billion (EUR 1.2 bln) in August to reach RON 450.2 bln (EUR 92.3 bln) at the end of the month.

The debt to GDP ratio edged up to 42.8% from 42.2% one month earlier and 35.2% at the end of 2019.

The Social Democrat opposition took the opportunity to highlight that the public debt burden soared by RON 85 bln (EUR 17.5 bln) during the 11 months of Liberal ruling after it had increased by only RON 79 mln during the two years and ten months of Social Democrat ruling. The public debt to GDP ratio has remained steady during the Social Democrat ruling (around 35%), while it surged above 42% after the Liberals took office, the Social Democrats pointed out.

Liberal finance minister Florin Citu replied that the Social Democrats wasted the money they borrowed during the economic growth cycle when the Government should have run surpluses to be spent during the economic cycle's downward episode.

(Photo source: George Oprea/Dreamstime.com)