ABSTRACT

The paper presents the evolution of financial decentralization in Romania, from its beginning, in 1994, with the first law on local taxes and duties, and until the present-day reform which outlines the premises of true decentralization in our country. The work analyzes the deficiencies of the first steps of financial decentralization, emphasizing the need to decentralize and/or transfer resources to the local level, in order to empower the administrative decentralization.  In this section, the analysis focuses on the evolution of the broken-down split shares of the income tax. Finally, we analyze and comment the latest legislation on the matter, which seems to achieve the fine balance between the local budgets, as well as a necessary degree of transparency and objectivity.

Author:

Georgescu Maria – Andrada
National School of Political Studies and Public Administration, Bucharest, Romania

Keywords – financial decentralization, local fiscal incomes, local government revenues

JEL Classification – E62, H71

Paper type –Case study

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HIGHLIGHTS OF FINANCIAL DECENTRALIZATION IN ROMANIA