Equalization of the Budget Incomes in the Administrative-Territorial Structures

Nicolae Balalia () and Constantin Afanase ()
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Nicolae Balalia: University of Bucharest, Romania
Constantin Afanase: Dunarea de Jos University of Galati, Romania

Economics and Applied Informatics, 2010, issue 2, 185-190

Abstract: The research theme is important for the local economy and financial literature on local public finance. It is known that the tax base of the territories is quite uneven and providing quality public services is impossible based on their own sources. The support for less developed local public administration from the financial point of view requires fiscal decentralization and involves financial equalization procedures or other similar measures aimed at eliminating the effect of unequal distribution for potential funding sources. Financial equalization is a group of financial actions made in order to overcome economic and fiscal disparities between territories. The purpose of financial equalization is the additional funding of less developed territories in order to reduce regional disparities.

Keywords: financial equalization; fiscal decentralization; inter-budgetary relations; cost-benefit; economic efficiency (search for similar items in EconPapers)
JEL-codes: E62 H71 H72 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fseeai:y:2010:i:2:p:185-190

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