Overviewing the Expenditures Structure in Local Self-Government Entities

Author:Elena Rusu (Cigu), Mihai-Bogdan Petrisor
Pages:363-369
Green Economy and Sustainable Development
363
Overviewing the Expenditures
Structure in Local Self-Government Entities
Elena Rusu (Cigu)1, Mihai Bogdan Petrișor2
Abstract: The process of decentralization in EU countries is permanent in registration due the new
entries in 2004 and 2007, which emphasizes on the one h and the major role of local governance for
sustainable development, and on the other hand the challenges that local governments have in the
management of local public funds. Thus, the structure of local public expenditures and their correlation
with revenues, highlight the complexity of the duties of local government. The research paper will focus
on the structure of local expenditures of the public sector, using the background offered b y literature
based on good practices and the analysis of official statics data for empirical evidences. We estimate the
analysis to offer a viewpoint on the expend itures structure of local budgets with positive aspects, but also
deficiencies that require some solutions and policy options. Thus, the paper can be a starting viewpoint
which allows researchers to develop the domain in a much more complex research.
Keywords: local budget; local expenditures; local government; sustainable development
Jell Classification: H7; H72; H76
1. Introduction
Currently, expenditure incurred locally plays an important role in the functioning of the national
economy. Thus, the delimitation of competences categories of local authorities and their scope is
reflected in expenditures in local budgets are expected in order to provide local public services.
Given the diversity of local financial systems in the European Union, we find that there are general
rules and basic principles (for example, the European Charter of Local Self- Government) that each
state adapted to the particularities of that State. Thus, some financial systems fit into the general
pattern of decentralization of the federal states (Germany), others are characterized by centralization at
the national level where there are some weaker trends decentralization (Malta, Greece) or severe
(Romania). Whatever form of decentralization that gets every country, it is important that each state
establish more concrete and exact administrative powers of administrative-territorial units, so as to
create a symbiosis with their financial capacity to develop sustainable local.
1 Assistant Professor, PhD, Alexandru Ioan Cuza University of Iaşi, Romania, Address: 11 Carol I Blvd, Iasi, Romania, Tel.:
0232 20 1000, Fax: 0232. 20 1201, Corresponding author:
2 Assistant Professor, PhD, Alexandru Ioan Cuza University of Iaşi Romania, Address: 11 Carol I Blvd, Iasi, Romania, Tel.:
0232 20 1000, Fax: 0232. 20 1201, Corresponding author:

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