Romanian Government cuts massively local councils' funds

The Romanian Government intends to reduce drastically the quotas reserved for local councils from the revenues brought by the tax on salaries and to axe a large percentage of civil servants roles, as indicated by a Finance Ministry ordinance project to be debated today with local administration representatives.

The project plans to:

• cut 12% off the quota local councils are allocated from salary tax revenue;

• reduce by 4% the same quota for county councils;

• slash 22% of the salary tax quota allocated to Bucharest.

Currently, local councils receive 47% of the flat salary tax and county councils get 13% and 22% into a separate account, aimed for general authorities and county public finance, opened at the county residence treasury to even local and county councils’ budgets.

Plus, the number of civil servants, excluding the self-financed Markets Authority, count 2,600. The draft ordinance proposes to reduce the role to 950.