AN ASSESSMENT OF THE FINANCING SYSTEM
              OF LOCAL COMMUNITIES IN ROMANIA

 Lecturer PhD Dănule iu Dan Constantin,”1 Decembrie 1918” University Alba Iulia
           Lecturer PhD Mutaşcu Mihai Ioan, West University Timişoara
         Lecturer PhD student Enache Cosmin, West University Timişoara


   Abstract: The paper reflects the importance of the local budgets in the Romanian
budget system and it shows the evolutions of the different types of revenues of local
budgets in the period 1991-2005. It emphasizes the mechanisms of local budgets
equalization during this period. An important part of the paper is dedicated to the
differences between the structure and importance of local budgets order by development
regions in order to reflect the different importance of the equalization grants for local
budgets. It also suggests some improvements to be done in the mechanism of the
equalization grants.

       Keywords: local budget, budget system, equalization grants

       JEL codes: H71, H72, H77.