The Association of Romania's Towns and Cities (AOR), representing the small and medium-sized towns, calls on the government to understand the real needs of local communities and to find solutions together with the associative structures of communes, towns and municipalities for financing them.
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"We strictly break with the provisions of the draft budget for 2019 regarding the financial allocation of the territorial-administrative units made by the current Government, the local autonomy and the development capacity of the administrative-territorial units being heavily affected by the proposals made these days by the members of the Executive. The Association of Romania's Towns and Cities calls for reason and balance by asking the Romanian Government to understand the real needs of local communities and to find solutions for their financing together with the associative structures of communes, cities and municipalities," reads a press release of AOR.
The Association urges the Ministry of Public Finance and the Government to comply with the commitments under the Governing Program 2018-2020, according to which the income tax and the pension tax should fully go back to the budgets of local public administrations as of 1 January 2019.
According to the same sources, the chapter "Public Administration - Regional Policies" in the governing program stipulates that the allocation to the budgets of the administrative-territorial units should be carried out as follows: 60 percent to the local budgets of the communes, towns and municipalities on whose territory the income tax payers operate; 20 percent to the local budget of the county; 20 percent in a distinct account opened in the name of the regional general government department of public finances / county administrations of public finances with the exchequer of the municipality county residence for balancing the local budgets of communes, towns and municipalities.
"Within the mechanism used to balance the local budgets of municipalities, towns and communes, which complements their own revenues in order to ensure a minimal operating budget, the establishment of the amount per inhabitant should be made taking into account the fact that almost all the units in the urban environment organize and ensures the functioning of public services of increased diversity, size and complexity that serve, besides the inhabitants of these ATUs, the inhabitants of the neighboring communes," the AOR states.
The Association also argues that the per capita sums to be taken into account when ensuring the minimum operating budget for 2019 will be: 850 lei / inhabitant for administrative-territorial units with commune status, 1,000 lei / inhabitant for administrative-territorial units - having the status of a town or municipality, other than county seat municipalities, 1.150 lei / inhabitant for administrative-territorial units having the status of county residence.
AGERPRES .
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