PUBLIC DEBT SERVICE AND ITS IMPACT ON PUBLIC EXPENDITURES

In this paper we analyze the main implications of public debt stock and public debt service on the structure of public expenditure In Romania. Based on economic structure of public expenditures and data for 1995-2010 we use a multiple regression analysis in order to emphasize the shifts of public expenditures as a response at variations in public debt service and its stock along with other macroeconomic indicators which bear a significant influence on public expenditures dynamic.We find that due to increased public indebtedness the composition of public expenditures composition suffers important shifts from productive to unproductive categories.