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The Degree of Autonomy of the Romanian Local Public Expenditures

Author

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  • Maria Letitia Andronic (Bratulescu)

    (Transilvania University of Brasov)

Abstract

The process of local public spending optimization is extensively studied by those who have the power of decision towards saving. Even if the goal is to adjust the imbalance revenues/expenditures, the trend to spend more than accumulated is still a matter of concern. Our objective is that of analyzing the local governments’ functional expenditures by measuring the degree of decentralization/autonomy. The value of the paper is given by the model we applied for Romania which is based on spending management. By analyzing different types of expenses, we have highlighted that local expenditures represent instruments of strengthening or weakening local autonomy. The indicators measure the effectiveness of local expenditures by using the model published by The World Bank in 2006. We gathered information through interviewing different Town-Hall representatives from Brasov County and then we gave scores and established ranks. As the degree of autonomy reached a score of about 3 on a scale of 1-4, we identified that the class in which Romania is placed (B) is mostly defined in terms of delegated powers and not decentralized competences. The study is significant for politicians, for those responsible for implementing decentralization, but also for the taxpayers who deserve the best public services.

Suggested Citation

  • Maria Letitia Andronic (Bratulescu), 2016. "The Degree of Autonomy of the Romanian Local Public Expenditures," EuroEconomica, Danubius University of Galati, issue 2(12), pages 146-160, April.
    • Handle: RePEc:dug:journl:y:2016:i:2:p:146-160
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3206/3228
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    References listed on IDEAS

    as
    1. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
    2. Meloche, Jean-Philippe & Vaillancourt, Francois & Yilmaz, Serdar, 2004. "Decentralization or fiscal autonomy ? What does really matter ? effects on growth and public sector size in European transition countries," Policy Research Working Paper Series 3254, The World Bank.
    3. Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, John Wiley & Sons, vol. 66(2), pages 505-525, January.
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    Cited by:

    1. Dănuleţiu Dan-Constantin & Dănuleţiu Adina-Elena, 2017. "Some Differences in the Budgetary Situation of the Local Authorities from Romania’s “Centru†Region of Development," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 558-564, December.
    2. Iuliana Cenar, 2018. "Fiscal Policies Regarding Local Taxes and Fees," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 18(1), pages 25-34.
    3. Marius Sorin Dinca & Mara Madaleno & Mirela Camelia Baba & Gheorghita Dinca, 2019. "Environmental Information Transparency—Evidence from Romanian Companies," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    4. Dan-Constantin Danuletiu & Adina-Elena Danuletiu, 2016. "Analysis of the Local Budget’s Expenditures Structure at Different Types of Administrative Units in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 461-466, February.

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