Annals of the „Constantin Brâncuşi” University of Târ gu Jiu, Economy Series, Issue 2/2019 „ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2248-0889, ISSN-L 2248-0889 THE EVOLUTION OF PUBLIC DEBT AND THE COMPARISON WITH ITS WEIGHT IN ACTUAL GDP LUCIAN-ION MEDAR PROFESSOR PHD. "CONSTANTIN BRANCUSI" UNIVERSITY OF TARGU JIU, ROMANIA e-mail: lucian_iunie@yahoo.com IRINA-ELENA CHIRTOC LECTURER. PHD. "CONSTANTIN BRANCUSI" UNIVERSITY OF TARGU JIU, ROMANIA e-mail: irynavoica@yahoo.com Abstract Analyzing this problem of increasing or decreasing the public debt in Romania we have found that there are many debates between the contemporary economists regarding the economic development in this way. Most of the work is summed up at the very low level of budgetary revenues collected in recent years and the steady increase of budget expenditures. Public debt was and is well below the 60% of GDP ceiling set by the Maastricht Treaty. But there is a trend of economic thinking that advocates raising public debt, but which can be found in productive investments conducive to job creation and GDP growth. Our study shows that although we have quite large economic growth, however, in Romania, the lowest budget revenues in Europe are registered, due to a rise in public debt, both calculated as a percentage of GDP. This state of the economy may be the result of an asymmetry in Romania's European integration policy, the need to meet the nominal convergence criteria and the real convergence indicators that are so important to enter the eurozone. On the background of statistical data, through heuristic research, we set out to find out how best it is to roll out year on year increasing public debt for the sustainable development of the economy, or to reduce public debt in order not to leave a burden too to the future generations and to find other ways of development. Keywords: public debt, GDP, government gross debt, Classification JEL: E44, F36 1. INTRODUCTION Romania, 29 years ago, was the only country in the world that had managed to pay its external debt. Without reiterating the huge cost paid by the economy and the population to get to that situation, now the Romanian state is heading right to the opposite pole. Romania is currently running and managing on debt and the rise in public debt is unstoppable, owing mainly to budget imbalances. In many financial studies are two words around which revolve the balance of the general government "claims" and "debt". Debt is the amount receivable by the creditor and the debt is the liability assumed by a natural or legal person called debtor to another person named creditor. Both, the claim and the debt are enforced by a written act under a law. According to the law, public debt is made up of government public debt plus local public debt. By public debt is meant the debt in particular that evidenced by securities that the state has vis-à-vis natural or legal persons from the country or from abroad (who have purchased government bonds or treasury certificates) to pay certain amounts to their holders at some point in the future to cover the State's financial needs during a financial exercise. In relation to the issuer, public debt is government (through government securities issued directly by the government or state central government) and local government debt, ie local governments (municipal or county councils, etc.). Depending on the domicile of the creditor (resident or non-resident), public debt is internal or external. 17