IDEAS home Printed from https://ideas.repec.org/a/pmu/cjurid/v68y2017p13-31.html
   My bibliography  Save this article

Forming Of Local Budgets: Between Fiscal Decentralization And Social Solidarity

Author

Listed:
  • Brîndusa GOREA

    (Professor, PhD, ”Dimitrie Cantemir” University of Tirgu Mures, ROMANIA.)

  • Oana Voica NAGY

    (University Assistant, PhD, ”Dimitrie Cantemir” University of Tirgu Mures, ROMANIA.)

  • Ioana Raluca TONCEAN-LUIERAN

    (University Assistant, PhD, ”Dimitrie Cantemir” University of Tirgu Mures, ROMANIA.)

Abstract

Financial decentralization is an essential part of the administrative and financial decentralization process, because it represents the most important source that fuels the public budgets. The transfer of administrative competences from the center towards the periphery, meaning from the central public administration to the local ones, must be accompanied by the increase of the local budget revenues, which is in direct dependence of financial decentralization, by increasing the amount of taxes entering the local budgets (without increasing the tax burden). Increasing the local budget revenues is also possible by allocation of additional amounts from the national budget, but this doesn’t represent a real decentralization, rather a disguised centralization, where the state decides how much, from where and under what form they are allocated to the local authorities, and this last one is in a continuous uncertainty and dependency to the center. This study proposes a modern conception on the financial decentralization in Romania, in accordance with the majority of the direct financial revenues (income tax and profit tax) that must enter in the budget of the localities, from where these will turn – in order to respect the financial equality and solidarity principle – odds to the county budget and to the state budget.

Suggested Citation

  • Brîndusa GOREA & Oana Voica NAGY & Ioana Raluca TONCEAN-LUIERAN, 2017. "Forming Of Local Budgets: Between Fiscal Decentralization And Social Solidarity," Curentul Juridic, The Juridical Current, Le Courant Juridique, Petru Maior University, Faculty of Economics Law and Administrative Sciences and Pro Iure Foundation, vol. 68, pages 13-31, March.
  • Handle: RePEc:pmu:cjurid:v:68:y:2017:p:13-31
    as

    Download full text from publisher

    File URL: http://www.upm.ro/facultati_departamente/ea/RePEc/curentul_juridic/rcj17/recjurid171_1F.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Lucian CHIRIAC & Zsuzsanna K. SZABO, 2014. "Legal And Regulatory Implications Of The Successful Implementation Of The Public Policy Of E-Government In Romania Reflection On The Future And Barriers," Curentul Juridic, The Juridical Current, Le Courant Juridique, Petru Maior University, Faculty of Economics Law and Administrative Sciences and Pro Iure Foundation, vol. 58, pages 87-100, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    local budgets; fiscal decentralization; social solidarity; financial balance; transparency; quality public services.;

    JEL classification:

    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pmu:cjurid:v:68:y:2017:p:13-31. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bogdan Voaidas). General contact details of provider: http://edirc.repec.org/data/feuttro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.