Financial Management Strategies for Romanian Local Public Administration

Public services should be delivered by public authorities. From a financial point of view, these services are financed from taxes collected to public budgets and other resources provided for the law. Collected taxes are distributed between central and local levels in order to ensure funds to every authority which is nominated to offer such services. During decentralization, periodically, the management of public services is reorganized by forcing local authorities to render new services which previously were managed by central authorities. In order to balance local revenues (including transfers) with local competency financing needs, local authorities should develop financial management strategies. Public service rendering mechanisms and financial balancing are presented in the case studies presenting the situation in education and healthcare systems.