Government Justifies Administrative Reform Need: Bolojan Highlights Clear Imbalances

Morgan Winslow

ago 1 hour

The Romanian government is advocating for significant changes in public administration. On January 13, the Ministry of Development unveiled a legislative proposal aimed at reforming the administrative structure. This initiative includes a 10% reduction in personnel expenditures and a decrease in local job positions.

Government Justifies Administrative Reform Need: Bolojan Highlights Clear Imbalances

Premier Ilie Bolojan underscored critical issues arising from poor administrative management in recent years. He referred to data collected over time, showing troubling disparities when compared to EU countries. Romania’s dependence on state budget transfers is particularly concerning.

State budget transfers: 7.43% of GDP
Own revenues (excluding transfers): 1.51% of GDP
Percentage of transfers in local budgets: 83.1%
EU average of transfers: 51.1%
Local tax revenues in Romania: 0.74% of GDP
EU average for local taxes: 3.68% of GDP
Property tax revenues in Romania: 0.55% of GDP
EU average for property taxes: 1.85% of GDP

Bolojan explained that these figures highlight the significant reliance on state transfers, which pressures local budgets. The local payroll expenses are excessively high, causing further strain. Currently, costs associated with local administration salaries stand at 3.07% of GDP, while local tax and revenue contributions are substantially lower.

Comparative Analysis with the EU

Within the EU, local salary expenses average 3.59% of GDP, closely matching local revenues at 3.68%. In Romania, however, the local authorities incur costs over three times higher than their own generated revenues. Notably, investments in local administration are at 2.98% of GDP, significantly exceeding the EU average of 1.56%.

Romanian local investments: 2.98% of GDP
EU average local investments: 1.56% of GDP
Current funding sources: National programs and European funds

Bolojan pointed out marked differences between municipalities. Areas that host significant economic activity and county seats fare better compared to other locations facing greater imbalances. Such disparities must be acknowledged when considering administrative structures across countries.

Anticipated Impact of Administrative Reform

The premier remains optimistic regarding the upcoming reforms. The proposed changes aim to:

Increase local authority revenues.
Co-finance local investments.
Save public funds for enhanced citizen services.
Encourage local economic development.
Decentralize authority to local government.
Reduce personnel costs in overstaffed administrations.

Bolojan emphasized that correcting these imbalances is essential for creating more efficient governance that is responsive to citizens’ needs. As Romania moves forward, these reforms could positively reshape the administrative landscape.