The structure and dynamics of public expenditure in post-pandemic Romania

Abstract

Public spending in Romania in the post-pandemic period was influenced by several factors such as the need for economic recovery, support for the population and the private sector, and adaptation to new economic and social realities. In this article we intend to study the evolution and structure of public spending grouped according to economic classification to highlight the changes that have taken place in the way of allocating public financial resources and the causes that have led to the increase of public spending.

The article starts with the review of the literature in which we will present some aspects of the literature on the concept of public expenditure and its content, as well as the classification of public expenditure according to the economic criterion. In the second part of the paper we will analyze the dynamics and structure of public expenditure in the general consolidated budget of Romania in the period 2020–2024 based on official data that can be found on the website of the ministry of finance in section „Information on budget implementation”. The analysis shows that in the period 2020-2024, public spending in Romania recorded a steady and pronounced growth. At the level of total public expenditure, there is a significant change in their volume from 424455,2 million lei in 2020 to 727072,4 million lei in 2024, which represents an increase of 71.29%.