European Financial and Accounting Journal
European Financial and Accounting Journal
European Financial and Accounting Journal
Faculty of Finance and Accounting, University of Economics, Prague

European Financial and Accounting Journal 2016/3

Local Revenue Mobilization in Romania

DOI: https://doi.org/10.18267/j.efaj.166

[full text (PDF)]

Octavian Moldovan

As public institutions are faced with more diverse and increased community needs, significant concern arises (both in academia and practice) for the dwindling resources available at the local level and the factors which can influence local revenue mobilization. Using data for 3,227 Romanian territorial-administrative (all Romanian territorial administrative units except Bucharest – the capital city), this research compares local revenue mobilization (calculated as: effectively collected revenues, as a share of what was predicted at the beginning of the budgetary year) for the 2008 – 2011 period, trying to determine if the type of a territorial administrative unit influences its public revenue mobilization. The post hoc ANOVA showed that the type of a local institution (be it commune, city, municipality, county or sector) does not affect the level of revenue collection (proxied by collected/predicted revenues); where such relationships between these two variables were found, they were rather spurious and did not surfaced across the entire dataset.

Keywords: Collected vs. predicted public revenues, Financial Decentralization, Local public revenue collection/mobilization, Post Hoc ANOVA

JEL Classification: H71, H72

References:

Poverty Reduction in East Africa: Lessons for Tax Policy and Administration. African Development Bank, Tunis.

Akudugu, J. A., Oppong-Peprah, E., 2013. Local Government Revenue Mobilisation and Management: The Case of Asante Akim South District. Journal of Public Administration and Governance 2, 98-120. DOI: 10.5296/jpag.v3i2.3977.

Brașoveanu, I. V., Obreja Brașoveanu, L., 2013. Public Sector Influences in the Development of Underground Economy and Corruption in Romania, in EU Context. Economic Computation and Economic Cybernetics Studies and Research 1, 167-184.

Cristinel, I., 2012. Financial Side Analysis of Local Autonomy in Romania. Anale. Seria Știinte Economice. Timișoara 18, 915-921.

Dabla-Norris, E., 2006. The Challenge of Fiscal Decentralisation in Transition Countries. Comparative Economic Studies 48, 100-131. DOI: 10.1057/palgrave.ces.8100063.

Danulețiu, D. C., 2010. Fiscal Decentralization and Issues of Municipal Bonds. The Case of Romania. Polish Journal of Management Studies 1, 70-78.

de Mello, L., Barenstein, M., 2001. Fiscal Decentralization and Governance: A Cross-Country Analysis. IMF Working Paper WP/01/71, Washington, D.C., IMF. DOI: 10.5089/9781451849240.001.

Elezi, S., 2015. Local Governance in an International Comparative Perspective. Comparing Local Government Finances in Macedonia with Slovenia. European Scientific Journal 13, 519-538.

Gershberg, A. I., 2008. The Realpolitiks of Decentralization and Formula Funding in Romania: A Confounding Case Study. Paris, UNESCO.

Gideon, Z., Alouis, M., 2013. Systems, Processes and Challenges of Public Revenue Collection in Zimbabwe. American International Journal of Contemporary Research 2, 49-60.

IMF, 2015. Current Challenges in Revenue Mobilization: Improving Tax Compliance. Washington, D.C., IMF.

Institutul pentru Politici Publice, 2001. Bugetele Locale între Teorie şi Practică. IPP, Bucureşti.

Ioniţă, S., 2005. Money for Our People? Decentralisation and Corruption in Romania: The Cases of the Equalisation, Infrastructure and Pre-university Education Funds. Public Administration and Development 3, 251-267. DOI: 10.1002/pad.365.

Iorga, E., Moraru, A., Giosan, V., 2010. Argument. In Iorga, E., Moraru, A., Giosan, V. Bugetele Autorităţilor Locale din România la Cote de Avarie: Politici de Finanţare Incoerente şi Excesiva Politizare a Procesului de Alocare a Resurselor. Bucureşti, IPP, 5-7.

Marian, C. G., King, R. F., 2016. Political Opinion and the Trends in Romanian Government Expenditures. Transylvanian Review of Administrative Sciences 48E, 54-65.

Mascagni, J., Moore. M., McCluskey, R., 2014. Tax Revenue Mobilisation in Developing Countries: Issues and Challenges. Brussels, EP Publication Office. DOI: 10.2861/58312.

Moldovan, O., Macarie, F. C., 2015. Reducing Uncertainty in Romanian Public Finances: Forecasting Models for Revenue Collection. Procedia Economics and Finance 32, 1550-1567. DOI: 10.1016/s2212-5671(15)01545-2.

Ndunda, J. M., Ngahu, S. T., Wanyoike, D., 2015. Analysis of Factors Influencing Optimal Revenue Collection by County Governments in Kenya. International Journal of Economics, Commerce and Management 5, 1114-1129.

Network of Associations of Local Authorities of South-East Europe-NALAS, 2012. Fiscal Decentralization Indicators for South-East Europe Report. Skopje, NALAS.

Opoku, E., Kyeremeh, C., Odoom, D., 2014. Local Revenue Mobilization Mechanisms: Evidence from the Abura-Asebu-Kwamankese District in Ghana. Developing Country Studies 26, 125-137.

Profiroiu, M., Profirou, A., 2006. Decentralization Process in Romania. Transylvanian Review of Administrative Sciences 16E, 115-123.

Rodríguez-Pose, A., Krøijer, A., 2009. Fiscal Decentralization and Economic Growth in Central and Eastern Europe. LSE ‘Europe in Question’ Discussion Paper Series no. 12/2009, London School of Economics. DOI: 10.2139/ssrn.1550917.

Romanian Parliament, 2007. Legea nr. 100 din 2007 pentru modificarea şi completarea Legii nr. 351/2001 privind aprobarea Planului de amenajare a teritoriului naţional - Secţiunea a IV-a - Reţeaua de localităţi. Official Gazette of Romania 284.

Romanian Parliament, 2010. Legea nr. 86 din 2010 pentru înfiinţarea comunei Racşa, judeţul Satu Mare, prin reorganizarea comunei Oraşu Nou. Official Gazette of Romania 342.

Rondinelli, D. A, 1981. Government Decentralization in Comparative Perspective: Theory and Practice in Developing Countries. International Review of Administrative Sciences 2, 133-145. DOI: 10.1177/002085238004700205.

Ștefan, M. C., Dogaru, M., 2011. Implications of Financial Decentralization on the Local Budgets Balancing Policy. Knowledge Horizons – Economics 3-4, 130-135.

The Constitution of Romania, 2003. Legea nr. 429 din 2003 de revizuire a Constituţiei României. Official Gazette of Romania 758.

The Direction for Fiscal Policies and Local Budgets (DFPLB), 2013. Gradul de colectare în anii 2008, 2009, 2010 şi 2011 - pe UAT-uri, tipuri de UAT-uri şi pe judeţe. Available from: <http://www.dpfbl.mai.gov.ro/analize_bugete.html.> [8 June 2015].