Research Report RomaniaWinners and Losers
Subtitle
The Impact of Reform of Intergovernmental Transfers
Clare Romanik, Pena Coman, Daniel Daianu, Hernando Garzon
Display Date
File
File
Download Report
(514.97 KB)

This report analyzes the distributional impact of Romania's 1999 Law on Local Public Finance, and makes recommendations for ameliorating its adverse effects. By providing a stable revenue source for municipalities, this law improves the investment planning and financial management capabilities. However, in a survey of local councils, the authors find that the law tends to favor councils with strong revenue-collecting capacity and wealthier tax bases. The councils that lack these attributes witnessed a serious decline in their revenue sources. The report makes a series of recommendations for how to counter the negative distributional effects of an otherwise commendable law.
Research Areas Global issues
Tags International municipal and intergovernmental finance International development and governance