Romania - Reining in Local Government Spending

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 gover...

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Bibliographic Details
Main Author: World Bank
Format: Other Poverty Study
Language:English
Published: World Bank 2012
Subjects:
TAX
Online Access: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
http://hdl.handle.net/10986/2736
id okr-10986-2736
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTANT
ACCOUNTING
ADMINISTRATIVE BURDEN
ADMINISTRATIVE CAPACITY
ARREARS
BAILOUT
BAILOUTS
BANKING SECTOR
BANKRUPTCIES
BANKRUPTCY LAW
BANKRUPTCY PROCEDURE
BLOCK GRANT
BORROWER
BUDGET CYCLE
BUDGET EXECUTION
BUDGET PROCESS
BUDGET REQUIREMENT
CAPITAL EXPENDITURE
CAPITAL EXPENDITURES
CAPITAL GRANTS
CAPITAL INVESTMENT
CAPITAL PROJECTS
CAPITALS
CASH FLOW
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT AGENCIES
CENTRAL GOVERNMENT CONTROL
CENTRAL GOVERNMENT SUBSIDIES
CITIES
CIVIL SERVICE
COST SHARING
COST-SHARING
CREDIT APPLICANT
CREDITORS
CURRENCY
CURRENT ACCOUNT
DEBT CONTROLS
DEBT FORGIVENESS
DEBT MANAGEMENT
DEBT REPAYMENT
DEBT SERVICE
DECENTRALIZATION
DEFICITS
DEVELOPMENT EXPENDITURES
DISBURSEMENTS
DISCRETIONARY REVENUES
DISTRICT
DISTRICT HEATING
DISTRICTS
ELECTRICITY
EQUALIZATION
EQUIPMENT
EXPENDITURES
FINANCIAL ASSETS
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL MANAGEMENT
FINANCIAL SYSTEM
FISCAL CAPACITY
FISCAL CRISIS
FISCAL DISCIPLINE
FISCAL GAPS
FISCAL POLICY
GARBAGE COLLECTION
GOVERNMENT BANKRUPTCY
GOVERNMENT BUDGET
GOVERNMENT BUDGETING
GOVERNMENT DEFICIT
GOVERNMENT FINANCE
GOVERNMENT REGULATIONS
GOVERNMENT REVENUE
GOVERNMENT SUBSIDY
HOUSEHOLDS
INCOME TAX
INSURANCE
INTERGOVERNMENTAL FISCAL RELATIONS
INTERGOVERNMENTAL FISCAL RELATIONSHIP
INTERGOVERNMENTAL TRANSFERS
INVENTORIES
INVENTORY
LAND PARCELS
LARGER TOWNS
LEGISLATION
LENDERS
LEVY
LICENSES
LOAN
LOCAL AUTONOMY
LOCAL COUNCILS
LOCAL DEBT
LOCAL EXPENDITURE
LOCAL FINANCE
LOCAL GOVERNMENT
LOCAL GOVERNMENT BORROWERS
LOCAL GOVERNMENT BORROWING
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENT REVENUES
LOCAL GOVERNMENT SPENDING
LOCAL GOVERNMENTS
LOCAL INFRASTRUCTURE
LOCAL PUBLIC ADMINISTRATION
LOCAL PUBLIC FINANCE
LOCAL REVENUE
LOCAL SPENDING
LOCAL TAXES
LONG TERM DEBT
MARKET VALUE
MARKET VALUES
MAYOR
MAYORS
MINISTRY OF EDUCATION
MINISTRY OF FINANCE
MUNICIPAL
MUNICIPAL BANKRUPTCY
MUNICIPALITIES
MUNICIPALITY
NATIONAL BANK
NURSERY SCHOOL
OPERATING COSTS
OUTSTANDING STOCK
PENSION
PENSION FUNDS
PERSONAL INCOME
POLICY DISCRETION
PRINCIPAL REPAYMENT
PRIVATE SECTOR
PRIVATE SECTOR LENDERS
PROPERTY OWNERSHIP
PROPERTY TAX
PROPERTY TAX ADMINISTRATION
PROPERTY TAX REFORM
PROPERTY TAXES
PROVISIONS
PUBLIC
PUBLIC DEBT
PUBLIC FINANCE
PUBLIC INVESTMENTS
PUBLIC SECTOR
PUBLIC SECTOR DEFICIT
PUBLIC SERVICES
PUBLIC TRANSPORT
PUBLIC TRANSPORTATION
PUBLIC UTILITIES
REAL ESTATE
RECEIPTS
RECURRENT EXPENDITURE
RECURRENT EXPENDITURES
REGISTRATION FEES
REGULATORY AUTHORITIES
REPAYMENT OF PRINCIPAL
REPAYMENT PERIOD
REVENUE MOBILIZATION
ROADS
SCHOOL BUILDINGS
SECTORAL MINISTRIES
SEWAGE
STAMP DUTIES
STATE BUDGET
STREETS
STRUCTURAL REFORMS
SUBNATIONAL
SUBNATIONAL EXPENDITURE
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
SUBVENTIONS
TARIFF REVENUES
TAX
TAX ADMINISTRATION
TAX BASE
TAX BASES
TAX CODE
TAX OBLIGATIONS
TAX RATE
TAX RATES
TAX REFORM
TAX REVENUES
TAX SHARING
TAXPAYERS
TECHNICAL ASSISTANCE
TOWN
TOWNS
TRANSPARENCY
TREASURY
UNION
URBAN AREAS
WAGES
spellingShingle ACCOUNTANT
ACCOUNTING
ADMINISTRATIVE BURDEN
ADMINISTRATIVE CAPACITY
ARREARS
BAILOUT
BAILOUTS
BANKING SECTOR
BANKRUPTCIES
BANKRUPTCY LAW
BANKRUPTCY PROCEDURE
BLOCK GRANT
BORROWER
BUDGET CYCLE
BUDGET EXECUTION
BUDGET PROCESS
BUDGET REQUIREMENT
CAPITAL EXPENDITURE
CAPITAL EXPENDITURES
CAPITAL GRANTS
CAPITAL INVESTMENT
CAPITAL PROJECTS
CAPITALS
CASH FLOW
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CENTRAL GOVERNMENT AGENCIES
CENTRAL GOVERNMENT CONTROL
CENTRAL GOVERNMENT SUBSIDIES
CITIES
CIVIL SERVICE
COST SHARING
COST-SHARING
CREDIT APPLICANT
CREDITORS
CURRENCY
CURRENT ACCOUNT
DEBT CONTROLS
DEBT FORGIVENESS
DEBT MANAGEMENT
DEBT REPAYMENT
DEBT SERVICE
DECENTRALIZATION
DEFICITS
DEVELOPMENT EXPENDITURES
DISBURSEMENTS
DISCRETIONARY REVENUES
DISTRICT
DISTRICT HEATING
DISTRICTS
ELECTRICITY
EQUALIZATION
EQUIPMENT
EXPENDITURES
FINANCIAL ASSETS
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL MANAGEMENT
FINANCIAL SYSTEM
FISCAL CAPACITY
FISCAL CRISIS
FISCAL DISCIPLINE
FISCAL GAPS
FISCAL POLICY
GARBAGE COLLECTION
GOVERNMENT BANKRUPTCY
GOVERNMENT BUDGET
GOVERNMENT BUDGETING
GOVERNMENT DEFICIT
GOVERNMENT FINANCE
GOVERNMENT REGULATIONS
GOVERNMENT REVENUE
GOVERNMENT SUBSIDY
HOUSEHOLDS
INCOME TAX
INSURANCE
INTERGOVERNMENTAL FISCAL RELATIONS
INTERGOVERNMENTAL FISCAL RELATIONSHIP
INTERGOVERNMENTAL TRANSFERS
INVENTORIES
INVENTORY
LAND PARCELS
LARGER TOWNS
LEGISLATION
LENDERS
LEVY
LICENSES
LOAN
LOCAL AUTONOMY
LOCAL COUNCILS
LOCAL DEBT
LOCAL EXPENDITURE
LOCAL FINANCE
LOCAL GOVERNMENT
LOCAL GOVERNMENT BORROWERS
LOCAL GOVERNMENT BORROWING
LOCAL GOVERNMENT FINANCE
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENT REVENUES
LOCAL GOVERNMENT SPENDING
LOCAL GOVERNMENTS
LOCAL INFRASTRUCTURE
LOCAL PUBLIC ADMINISTRATION
LOCAL PUBLIC FINANCE
LOCAL REVENUE
LOCAL SPENDING
LOCAL TAXES
LONG TERM DEBT
MARKET VALUE
MARKET VALUES
MAYOR
MAYORS
MINISTRY OF EDUCATION
MINISTRY OF FINANCE
MUNICIPAL
MUNICIPAL BANKRUPTCY
MUNICIPALITIES
MUNICIPALITY
NATIONAL BANK
NURSERY SCHOOL
OPERATING COSTS
OUTSTANDING STOCK
PENSION
PENSION FUNDS
PERSONAL INCOME
POLICY DISCRETION
PRINCIPAL REPAYMENT
PRIVATE SECTOR
PRIVATE SECTOR LENDERS
PROPERTY OWNERSHIP
PROPERTY TAX
PROPERTY TAX ADMINISTRATION
PROPERTY TAX REFORM
PROPERTY TAXES
PROVISIONS
PUBLIC
PUBLIC DEBT
PUBLIC FINANCE
PUBLIC INVESTMENTS
PUBLIC SECTOR
PUBLIC SECTOR DEFICIT
PUBLIC SERVICES
PUBLIC TRANSPORT
PUBLIC TRANSPORTATION
PUBLIC UTILITIES
REAL ESTATE
RECEIPTS
RECURRENT EXPENDITURE
RECURRENT EXPENDITURES
REGISTRATION FEES
REGULATORY AUTHORITIES
REPAYMENT OF PRINCIPAL
REPAYMENT PERIOD
REVENUE MOBILIZATION
ROADS
SCHOOL BUILDINGS
SECTORAL MINISTRIES
SEWAGE
STAMP DUTIES
STATE BUDGET
STREETS
STRUCTURAL REFORMS
SUBNATIONAL
SUBNATIONAL EXPENDITURE
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
SUBVENTIONS
TARIFF REVENUES
TAX
TAX ADMINISTRATION
TAX BASE
TAX BASES
TAX CODE
TAX OBLIGATIONS
TAX RATE
TAX RATES
TAX REFORM
TAX REVENUES
TAX SHARING
TAXPAYERS
TECHNICAL ASSISTANCE
TOWN
TOWNS
TRANSPARENCY
TREASURY
UNION
URBAN AREAS
WAGES
World Bank
Romania - Reining in Local Government Spending
geographic_facet Europe and Central Asia
Europe
Eastern Europe
Romania
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.
format Economic & Sector Work :: Other Poverty Study
author World Bank
author_facet World Bank
author_sort World Bank
title Romania - Reining in Local Government Spending
title_short Romania - Reining in Local Government Spending
title_full Romania - Reining in Local Government Spending
title_fullStr Romania - Reining in Local Government Spending
title_full_unstemmed Romania - Reining in Local Government Spending
title_sort romania - reining in local government spending
publisher World Bank
publishDate 2012
url 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
http://hdl.handle.net/10986/2736
_version_ 1764385869159989248
spelling okr-10986-27362021-04-23T14:02:04Z Romania - Reining in Local Government Spending World Bank ACCOUNTANT ACCOUNTING ADMINISTRATIVE BURDEN ADMINISTRATIVE CAPACITY ARREARS BAILOUT BAILOUTS BANKING SECTOR BANKRUPTCIES BANKRUPTCY LAW BANKRUPTCY PROCEDURE BLOCK GRANT BORROWER BUDGET CYCLE BUDGET EXECUTION BUDGET PROCESS BUDGET REQUIREMENT CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL GRANTS CAPITAL INVESTMENT CAPITAL PROJECTS CAPITALS CASH FLOW CENTRAL AGENCIES CENTRAL GOVERNMENT CENTRAL GOVERNMENT AGENCIES CENTRAL GOVERNMENT CONTROL CENTRAL GOVERNMENT SUBSIDIES CITIES CIVIL SERVICE COST SHARING COST-SHARING CREDIT APPLICANT CREDITORS CURRENCY CURRENT ACCOUNT DEBT CONTROLS DEBT FORGIVENESS DEBT MANAGEMENT DEBT REPAYMENT DEBT SERVICE DECENTRALIZATION DEFICITS DEVELOPMENT EXPENDITURES DISBURSEMENTS DISCRETIONARY REVENUES DISTRICT DISTRICT HEATING DISTRICTS ELECTRICITY EQUALIZATION EQUIPMENT EXPENDITURES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL SYSTEM FISCAL CAPACITY FISCAL CRISIS FISCAL DISCIPLINE FISCAL GAPS FISCAL POLICY GARBAGE COLLECTION GOVERNMENT BANKRUPTCY GOVERNMENT BUDGET GOVERNMENT BUDGETING GOVERNMENT DEFICIT GOVERNMENT FINANCE GOVERNMENT REGULATIONS GOVERNMENT REVENUE GOVERNMENT SUBSIDY HOUSEHOLDS INCOME TAX INSURANCE INTERGOVERNMENTAL FISCAL RELATIONS INTERGOVERNMENTAL FISCAL RELATIONSHIP INTERGOVERNMENTAL TRANSFERS INVENTORIES INVENTORY LAND PARCELS LARGER TOWNS LEGISLATION LENDERS LEVY LICENSES LOAN LOCAL AUTONOMY LOCAL COUNCILS LOCAL DEBT LOCAL EXPENDITURE LOCAL FINANCE LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWERS LOCAL GOVERNMENT BORROWING LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENT REVENUES LOCAL GOVERNMENT SPENDING LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL PUBLIC ADMINISTRATION LOCAL PUBLIC FINANCE LOCAL REVENUE LOCAL SPENDING LOCAL TAXES LONG TERM DEBT MARKET VALUE MARKET VALUES MAYOR MAYORS MINISTRY OF EDUCATION MINISTRY OF FINANCE MUNICIPAL MUNICIPAL BANKRUPTCY MUNICIPALITIES MUNICIPALITY NATIONAL BANK NURSERY SCHOOL OPERATING COSTS OUTSTANDING STOCK PENSION PENSION FUNDS PERSONAL INCOME POLICY DISCRETION PRINCIPAL REPAYMENT PRIVATE SECTOR PRIVATE SECTOR LENDERS PROPERTY OWNERSHIP PROPERTY TAX PROPERTY TAX ADMINISTRATION PROPERTY TAX REFORM PROPERTY TAXES PROVISIONS PUBLIC PUBLIC DEBT PUBLIC FINANCE PUBLIC INVESTMENTS PUBLIC SECTOR PUBLIC SECTOR DEFICIT PUBLIC SERVICES PUBLIC TRANSPORT PUBLIC TRANSPORTATION PUBLIC UTILITIES REAL ESTATE RECEIPTS RECURRENT EXPENDITURE RECURRENT EXPENDITURES REGISTRATION FEES REGULATORY AUTHORITIES REPAYMENT OF PRINCIPAL REPAYMENT PERIOD REVENUE MOBILIZATION ROADS SCHOOL BUILDINGS SECTORAL MINISTRIES SEWAGE STAMP DUTIES STATE BUDGET STREETS STRUCTURAL REFORMS SUBNATIONAL SUBNATIONAL EXPENDITURE SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS SUBVENTIONS TARIFF REVENUES TAX TAX ADMINISTRATION TAX BASE TAX BASES TAX CODE TAX OBLIGATIONS TAX RATE TAX RATES TAX REFORM TAX REVENUES TAX SHARING TAXPAYERS TECHNICAL ASSISTANCE TOWN TOWNS TRANSPARENCY TREASURY UNION URBAN AREAS WAGES 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. 2012-03-19T10:12:10Z 2012-03-19T10:12:10Z 2011-02-01 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 http://hdl.handle.net/10986/2736 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Economic & Sector Work :: Other Poverty Study Europe and Central Asia Europe Eastern Europe Romania