Effects of the Economic and Financial Crisis on the Revenues and Expenditures of Romanian Local Governments

In times of economic crisis, not only central governments but also local ones may experience deterioration in their financial situation. Also, the latter not only may but also should contribute through specific budgetary measures to the stabilization and recovery of the economy. Based on such considerations, this paper aims to provide, by analyzing relevant data from Eurostat and the Romanian National Institute of Statistics, an assessment of the effects of the crisis on the revenues and expenditures of Romanian local authorities, highlighting their peculiarities in relation to the effects recorded in other Central and Eastern European countries or stipulated in the literature. Also, the paper aims, by analyzing the changes in the structure of Romanian local budget revenues and expenditures, to assess the rationality of the measures adopted by local governments in crisis as well as their compatibility with the objectives of stabilizing national economy and promoting long-term economic growth.