Leading Romanian cities prepare for another year of austerity

The leading Romanian cities have started to publish their own budget drafts for 2011, which provide either for revenue declines or for anaemic increases against 2010, a year that was not at all good as far as revenues of the local administration are concerned: the revenues of the leading cities fell by an average 10% against 2009, which led to repeated expense adjustments.

In 2011, the state budget will not be generous with the local administration. The budget law for 2011 cut overall VAT funds allocated to local budgets to 13.7 billion RON (3.2 billion euros) from 17 billion RON (4 billion euros) in 2010.
Under the circumstances, city hall officials say they expect another year of austerity, but that a big part of the budget will go to investments in 2011.
The Romanian city boasting the highest revenues, Bucharest, has yet to finalise its draft budget for 2011 or publish the 2010 budget execution.
The draft budget approved by the councillors of the Bucharest Municipality last year provided for revenues of 4.4 billion RON (1 billion euros) and expenses of 5.6 billion RON (1.3 billion euros). The budget of the Municipality and of Bucharest's sectors amounts to over 2.6 billion euros.