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Analysis of the Procedure for Balancing the Local Budgets in Romania

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  • Bunescu, Liliana

    ()
    (“Lucian Blaga” University, Sibiu)

  • Cristescu, Marian

    ()
    (“Lucian Blaga” University, Sibiu)

Abstract

This paper aims to provide a short analysis of the procedure for public financial resources allocation throughout the country to supplement the local budgets. Is there a proper, objective and balanced distribution of public funds among the Romanian counties? Does any county face disadvantage by the allocation of amount from certain state budget revenues? An unequal, irrational economic development within a country results in changing the equilibrium and influences the overall balance and the individuals of the state. Local budgets are highly dependent on the funds they receive from the central budget. Very few local communities contrive to generate sufficient revenues by their own. Balancing local budgets is a necessity, but the balancing procedure suffered many legislative changes. Inadvertency consists not necessarily in the procedure of distribution of public money, but in the efficiency and effectiveness with which they are used locally.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2011)
Issue (Month): 1 (March)
Pages: 193-211

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Handle: RePEc:rjr:romjef:v::y:2011:i:1:p:193-211

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Keywords: budgetary allocations; balancing local budgets; public appropriations procedure; public procedure; VAT repartition;

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