Interconnections between local finances and regional development: a study case of Romania

Abstract

The objectives of economic development are promoted at the local administration level in the context of modern principles of public administration, as decentralization of public tasks, local autonomy and including the legislation of the right to self-government of local authorities. In this paper we performed an analysis on the role of local public finances in economic development, in Romania, using data reported in the online TEMPO database of the National Institute of Statistics and the Ministry of Public Works, Development and Administration for different periods of time. The main results confirm a strong interrelationship between different indicators from local public budgets and some indicators of development, which allow the formulation of useful policy recommendations for local government policy programs and the substantiation of economic development strategies.

Keywords

• local budgets
• local fiscal consolidation
• local revenues and expenditures
• economic development