Stimulating the private funding in Romanian education

AuthorDuguleana, C. - Duguleana, L.
PositionDept. of Economic Sciences and Business Administration, Transilvania University of Brasov
Pages101-106
Bulletin of the Transilvania University of Braşov Vol. 5 (54) No. 2 - 2012
Series V: Economic Sciences
STIMULATING THE PRIVATE FUNDING
IN ROMANIAN EDUCATION
C. DUGULEAN1 L. DUGULEAN1
Abstract: After 1990, education has been one of the areas of activity that
has not been adequately funded. Even though the laws governing the activity
in this area have established a percentage of 6% of GDP on education, this
has not happened. Given the underfunding of the Romanian education by
means of public sources, it is important to search for ways of funding, to
contribute to the smooth functioning of the educational process and to
increase its performance. The paper analyzes the possibility of stimulating
private contributions for the benefit of schools, and for those who benefit of
its services.
Key words: public funds, education, private funding, stimulating policies.
1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.
1. Introduction
The National Education Law stipulates
in Article 2 (7) that "In Romania,
education is a national priority." Article 8
(6) states that "For national education, the
funding allocated annually from the state
budget and from local government budgets
amounts to at least 6% of the gross
domestic product of that year.
Additionally, units and schools can
autonomously acquire and use their own
income. For scientific research, at least
1% of gross domestic product of the year is
allocated annually from the state budget."
These provisions of the new law of
national education are not new. The
pronouncement of education as a national
priority is found in Law. 84 of 24 July
1995, the Education Law, republished and
updated to December 2008. With regard to
allocating a part of GDP for financing
education, in Law 84/1995, in Article 170,
(1) it is mentioned, "State education
funding comes from the state budget,
eqaling at least 4% of the gross domestic
product". Article 170 (1) was amended by
Law no. 354 of 15 July 2004 as it follows:
"In order to finance the state education
from public funds, increasing budgetary
allocations are annually ensured, of at
least 6% of GDP".
Before the beginning of 2007, by the
Emergency Ordinance 88 of 20 November
2006, the provisions of paragraph 1 of
Article 170 of the Education Law were
ignored until 31 December 2007. In other
words, only in 2008 did this allocation
achieve 6% of GDP for education. But by
the end of 2008, the economic crisis also
included Romania. From 2008 until now,
this provision of the law has been far from
being met. In 2011, the amounts allocated
from the state budget and local government
budgets ranged around 2% of GDP.
2. Allocation of public funds for
education
The fact that the Romanian education
system has been underfunded is revealed
by data on the share of education spending

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