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Imbalances in Financial Autonomy at Different Level of Local Government in Romania

Author

Listed:
  • Gheorghe Matei

    (University of Craiova, Romania)

  • Olivia Manole

    (University of Craiova, Romania)

Abstract

Fiscal decentralization is an important influence factor on the autonomy of local government. To the extent in which a local government benefits from amounts and transfers from the central government, it depends on it and has a reduced capacity to make decisions about the services they provide to citizens, local autonomy being limited. Even if the legal framework for decentralization was created in Romania, we still can not talk about a high degree of financial autonomy of local governments. Further, significant amounts from the state budget are transferred to local budgets to cover local expenses. Moreover, despite consistent efforts to implement the decentralization process, there is a series of imbalances, especially in smaller territorial administrative units that are clearly disadvantaged both in terms of financial capacity to finance themselves through local taxes and duties, and especially in terms of the low absorption capacity of European funds. In general, in Romania, the degree of financial autonomy differs nationally from the city level and from the village level.

Suggested Citation

  • Gheorghe Matei & Olivia Manole, 2012. "Imbalances in Financial Autonomy at Different Level of Local Government in Romania," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 12(4), pages 137-146.
    • Handle: RePEc:pet:annals:v:12:y:2012:i:4:p:137-146
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    References listed on IDEAS

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    1. Emilia Ungureanu & Cristina Bâldan, 2011. "Strategic Model to Attenuate the Rural Inequalities in the South – West Region," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 11(3), pages 279-290.
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    Cited by:

    1. 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.
    2. 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.
    3. Daniela PIRVU & Claudia STANCIU-TOLEA, 2018. "Analyzing The Budgets Of Local Government Administrations In Romania," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 17(3), pages 83-88.

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      More about this item

      Keywords

      financial decentralization; financial independence; local revenues; local expenses;
      All these keywords.

      JEL classification:

      • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
      • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
      • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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