Romania - Reining in Local Government Spending

World Bank

dc.creator	World Bank
dc.date	2012-03-19T10:12:10Z
dc.date	2012-03-19T10:12:10Z
dc.date	2011-02-01
dc.date.accessioned	2023-02-17T20:40:53Z
dc.date.available	2023-02-17T20:40:53Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20110218011058
dc.identifier	http://hdl.handle.net/10986/2736
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/243105
dc.description	Sub-national Governments play an important role in the Romanian public sector. In 2009, sub-national spending was equivalent to 8.5 percent of gross domestic product (GDP). Romania has frequently adjusted its system for financing sub-national government over the last decade. These changes reflect ongoing Government concerns over the performance of local governments as well as attempts to increase the transparency and stability of the intergovernmental fiscal relationship. The most recent reform proposals reflect a more immediate concern: the government deficit. In an effort to meet aggregate targets for cuts in spending, the Government has been debating measures to reduce the local wage bill, cut transfers to local governments, and restrain local arrears. The principal objective of this technical assistance has been to advise the Government on the design and implementation of such efforts, and to suggest directions for longer-term structural reforms. Romania has a two-tier structure of local government. The national territory is divided into 41 counties (judets) and the city of Bucharest. These are then divided into various categories of second-tier local governments, hereafter referred to as localities. As of 2008, there were 3,179 such jurisdictions, consisting of 2,855 communes, 216 towns, 102 cities, and six Bucharest districts. Both counties and localities have elected councils and directly elected mayors/presidents. The budgets of sub-national governments are dominated by spending on education. Education accounted for 30 percent of sub-national expenditure in 2009. But the role of sub-national governments in education is limited. Localities act as paymasters for the ministry of education, distributing teachers' salaries on its behalf. These payments are financed from earmarked grants. Localities have no control over staffing numbers or wage levels in the education sector. They are, however, responsible for operating and maintaining school buildings, a function which they finance from discretionary revenues. In much the same respect, localities act as agents of centrally-financed social assistance programs, such as the guaranteed minimum income.
dc.language	English
dc.publisher	World Bank
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTANT
dc.subject	ACCOUNTING
dc.subject	ADMINISTRATIVE BURDEN
dc.subject	ADMINISTRATIVE CAPACITY
dc.subject	ARREARS
dc.subject	BAILOUT
dc.subject	BAILOUTS
dc.subject	BANKING SECTOR
dc.subject	BANKRUPTCIES
dc.subject	BANKRUPTCY LAW
dc.subject	BANKRUPTCY PROCEDURE
dc.subject	BLOCK GRANT
dc.subject	BORROWER
dc.subject	BUDGET CYCLE
dc.subject	BUDGET EXECUTION
dc.subject	BUDGET PROCESS
dc.subject	BUDGET REQUIREMENT
dc.subject	CAPITAL EXPENDITURE
dc.subject	CAPITAL EXPENDITURES
dc.subject	CAPITAL GRANTS
dc.subject	CAPITAL INVESTMENT
dc.subject	CAPITAL PROJECTS
dc.subject	CAPITALS
dc.subject	CASH FLOW
dc.subject	CENTRAL AGENCIES
dc.subject	CENTRAL GOVERNMENT
dc.subject	CENTRAL GOVERNMENT AGENCIES
dc.subject	CENTRAL GOVERNMENT CONTROL
dc.subject	CENTRAL GOVERNMENT SUBSIDIES
dc.subject	CITIES
dc.subject	CIVIL SERVICE
dc.subject	COST SHARING
dc.subject	COST-SHARING
dc.subject	CREDIT APPLICANT
dc.subject	CREDITORS
dc.subject	CURRENCY
dc.subject	CURRENT ACCOUNT
dc.subject	DEBT CONTROLS
dc.subject	DEBT FORGIVENESS
dc.subject	DEBT MANAGEMENT
dc.subject	DEBT REPAYMENT
dc.subject	DEBT SERVICE
dc.subject	DECENTRALIZATION
dc.subject	DEFICITS
dc.subject	DEVELOPMENT EXPENDITURES
dc.subject	DISBURSEMENTS
dc.subject	DISCRETIONARY REVENUES
dc.subject	DISTRICT
dc.subject	DISTRICT HEATING
dc.subject	DISTRICTS
dc.subject	ELECTRICITY
dc.subject	EQUALIZATION
dc.subject	EQUIPMENT
dc.subject	EXPENDITURES
dc.subject	FINANCIAL ASSETS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DISTRESS
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MANAGEMENT
dc.subject	FINANCIAL SYSTEM
dc.subject	FISCAL CAPACITY
dc.subject	FISCAL CRISIS
dc.subject	FISCAL DISCIPLINE
dc.subject	FISCAL GAPS
dc.subject	FISCAL POLICY
dc.subject	GARBAGE COLLECTION
dc.subject	GOVERNMENT BANKRUPTCY
dc.subject	GOVERNMENT BUDGET
dc.subject	GOVERNMENT BUDGETING
dc.subject	GOVERNMENT DEFICIT
dc.subject	GOVERNMENT FINANCE
dc.subject	GOVERNMENT REGULATIONS
dc.subject	GOVERNMENT REVENUE
dc.subject	GOVERNMENT SUBSIDY
dc.subject	HOUSEHOLDS
dc.subject	INCOME TAX
dc.subject	INSURANCE
dc.subject	INTERGOVERNMENTAL FISCAL RELATIONS
dc.subject	INTERGOVERNMENTAL FISCAL RELATIONSHIP
dc.subject	INTERGOVERNMENTAL TRANSFERS
dc.subject	INVENTORIES
dc.subject	INVENTORY
dc.subject	LAND PARCELS
dc.subject	LARGER TOWNS
dc.subject	LEGISLATION
dc.subject	LENDERS
dc.subject	LEVY
dc.subject	LICENSES
dc.subject	LOAN
dc.subject	LOCAL AUTONOMY
dc.subject	LOCAL COUNCILS
dc.subject	LOCAL DEBT
dc.subject	LOCAL EXPENDITURE
dc.subject	LOCAL FINANCE
dc.subject	LOCAL GOVERNMENT
dc.subject	LOCAL GOVERNMENT BORROWERS
dc.subject	LOCAL GOVERNMENT BORROWING
dc.subject	LOCAL GOVERNMENT FINANCE
dc.subject	LOCAL GOVERNMENT REVENUE
dc.subject	LOCAL GOVERNMENT REVENUES
dc.subject	LOCAL GOVERNMENT SPENDING
dc.subject	LOCAL GOVERNMENTS
dc.subject	LOCAL INFRASTRUCTURE
dc.subject	LOCAL PUBLIC ADMINISTRATION
dc.subject	LOCAL PUBLIC FINANCE
dc.subject	LOCAL REVENUE
dc.subject	LOCAL SPENDING
dc.subject	LOCAL TAXES
dc.subject	LONG TERM DEBT
dc.subject	MARKET VALUE
dc.subject	MARKET VALUES
dc.subject	MAYOR
dc.subject	MAYORS
dc.subject	MINISTRY OF EDUCATION
dc.subject	MINISTRY OF FINANCE
dc.subject	MUNICIPAL
dc.subject	MUNICIPAL BANKRUPTCY
dc.subject	MUNICIPALITIES
dc.subject	MUNICIPALITY
dc.subject	NATIONAL BANK
dc.subject	NURSERY SCHOOL
dc.subject	OPERATING COSTS
dc.subject	OUTSTANDING STOCK
dc.subject	PENSION
dc.subject	PENSION FUNDS
dc.subject	PERSONAL INCOME
dc.subject	POLICY DISCRETION
dc.subject	PRINCIPAL REPAYMENT
dc.subject	PRIVATE SECTOR
dc.subject	PRIVATE SECTOR LENDERS
dc.subject	PROPERTY OWNERSHIP
dc.subject	PROPERTY TAX
dc.subject	PROPERTY TAX ADMINISTRATION
dc.subject	PROPERTY TAX REFORM
dc.subject	PROPERTY TAXES
dc.subject	PROVISIONS
dc.subject	PUBLIC
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC FINANCE
dc.subject	PUBLIC INVESTMENTS
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SECTOR DEFICIT
dc.subject	PUBLIC SERVICES
dc.subject	PUBLIC TRANSPORT
dc.subject	PUBLIC TRANSPORTATION
dc.subject	PUBLIC UTILITIES
dc.subject	REAL ESTATE
dc.subject	RECEIPTS
dc.subject	RECURRENT EXPENDITURE
dc.subject	RECURRENT EXPENDITURES
dc.subject	REGISTRATION FEES
dc.subject	REGULATORY AUTHORITIES
dc.subject	REPAYMENT OF PRINCIPAL
dc.subject	REPAYMENT PERIOD
dc.subject	REVENUE MOBILIZATION
dc.subject	ROADS
dc.subject	SCHOOL BUILDINGS
dc.subject	SECTORAL MINISTRIES
dc.subject	SEWAGE
dc.subject	STAMP DUTIES
dc.subject	STATE BUDGET
dc.subject	STREETS
dc.subject	STRUCTURAL REFORMS
dc.subject	SUBNATIONAL
dc.subject	SUBNATIONAL EXPENDITURE
dc.subject	SUBNATIONAL GOVERNMENT
dc.subject	SUBNATIONAL GOVERNMENTS
dc.subject	SUBVENTIONS
dc.subject	TARIFF REVENUES
dc.subject	TAX
dc.subject	TAX ADMINISTRATION
dc.subject	TAX BASE
dc.subject	TAX BASES
dc.subject	TAX CODE
dc.subject	TAX OBLIGATIONS
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REFORM
dc.subject	TAX REVENUES
dc.subject	TAX SHARING
dc.subject	TAXPAYERS
dc.subject	TECHNICAL ASSISTANCE
dc.subject	TOWN
dc.subject	TOWNS
dc.subject	TRANSPARENCY
dc.subject	TREASURY
dc.subject	UNION
dc.subject	URBAN AREAS
dc.subject	WAGES
dc.title	Romania - Reining in Local Government Spending
dc.type	Economic & Sector Work :: Other Poverty Study
dc.coverage	Europe and Central Asia
dc.coverage	Europe
dc.coverage	Eastern Europe
dc.coverage	Romania