The decentralization of the public finance in Romania - past, present and future

Abstract

In this paper we have started from the question: why has the financial decentralization of the Romanian public administration not been finished in last 20 years? To answer this question we have analyzed the financial data available in the Yearbooks between 1990 and 2008 (this work-paper presents the last 10 years) and the legislative proposals delivered in the last 3 years to solve this problem. Our conclusion is: the politicians, whatever party, are not prepared to administer a real decentralization. The central authorities don't want to give up to privilege of power, and the local authorities, especially from the small towns do not have the capacity to achieve lasting development using a larger public budget.