DIMENSIONS OF THE ROMANIA?S BUDGET DEFICIT IN 2020. FINANCING AND PERSPECTIVES

The evolution of the Romanian economy in 2020 was marked by the emergence of the COVID-19 pandemic and the adoption of measures to restrict mobility, needed to prevent the disease spread. The health crisis management obviously required significant financial resources, in addition to the significant pre-crisis debt stock. On the other hand, measures adopted to support the economy, along with the gradual easing of restrictions over certain periods, have had the effect of improving investors and consumers perception. However, in order to maintain easy and cheaper access to the external financing market, it is crucial for Romania to engage in fiscal reforms that will improve the predictability of the fiscal framework, revenues collection capacity and will adjust budget expenditures according to the revenues evolution. Improving the governance of public investments, focusing mainly on strategic areas, as well as using European funds to a greater extent are the elements that can lead our country's economy to a new growth model, while reducing the pressure on budgetary resources.