Recent Changes in Public Sector Efficiency in Romania: Determinants and Implications

During the last years Romania has adopted restrictive fiscal and budgetary policies, as core strategic decisions of fiscal policy targeted to the control on budget deficit and public debt. Our study aims at estimating the impact of these policies on the efficiency of Romania's public sector. Using a broadly-accepted system of performance and efficiency indicators, we analyze the changes in performance and efficiency of Romania's public sector between 2011 and 2008. We find a reduction in the aggregate score for public sector efficiency, contrasting with the increase in public sector performance aggregate score. As for policy implications, we analyse the main causes and suggest some measures which might improve the efficiency of public sector.