Court of Auditors: Romania’s public debt per capita went up by 21% in two years

Romania’s public debt per capita reached some EUR 3,650 at the end of 2015, up 21% compared to 2013, when the level was EUR 2,957, according to a report by Romania’s Court of Auditors. Romania’s public debt increased by 6.8% in 2015 compared to 2014 and by over 18% compared to 2013, reaching EUR 69.8 billion. The increase in the public debt was due to the refinancing of the government debt, as well as to the need to finance the budget deficit. Romania’s gross domestic product (GDP) saw a positive evolution during this period, totaling EUR 158 billion in 2015, up 11.8% compared to 2013 and almost 7% over the level of 2014, in nominal terms. Thus, the public debt to GDP ratio reached a level of 38.4% at the end of 2015, placing Romania among the first five EU member states with the lowest public debt to GDP, the Court of Auditors’ report shows. At the end of 2015, the budget deficit was mostly financed (99.84%) from internal sources, namely through loans from the domestic market and temporary loans from the State Treasury (76.7%). The Court of Auditors’ report shows that Romania’s economic policy should focus on increasing its GDP both by developing the industrial and agricultural sector, but also by investing in construction and services. German FinMin: Romania must keep debt below 40% of the GDP editor@romania-insider.com