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Equalization of the Budget Incomes in the Administrative-Territorial Structures


  • Nicolae BALALIA

    () (University of Bucharest, Romania)

  • Constantin AFANASE

    () (Dunarea de Jos University of Galati, Romania)


The research theme is important for the local economy and financial literature on local public finance. It is known that the tax base of the territories is quite uneven and providing quality public services is impossible based on their own sources. The support for less developed local public administration from the financial point of view requires fiscal decentralization and involves financial equalization procedures or other similar measures aimed at eliminating the effect of unequal distribution for potential funding sources. Financial equalization is a group of financial actions made in order to overcome economic and fiscal disparities between territories. The purpose of financial equalization is the additional funding of less developed territories in order to reduce regional disparities.

Suggested Citation

  • Nicolae BALALIA & Constantin AFANASE, 2010. "Equalization of the Budget Incomes in the Administrative-Territorial Structures," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 185-190.
  • Handle: RePEc:ddj:fseeai:y:2010:i:2:p:185-190

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    financial equalization; fiscal decentralization; inter-budgetary relations; cost-benefit; economic efficiency;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy


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