FISCAL EQUALIZATION SYSTEM IN ROMANIA

After 1990s, the countries in transition have been in a process of finding their own path for public sector democratization and construction of a sound public finance management system. This paper aims to provide an overview of the system of fiscal equalization transfers in Romania starting from the first major step of decentralization taken after the fall of the communist period and the subsequent modifications for adapting to the new environmental conditions imposed especially by the European Union perspective. Therefore, in the first section of the paper I will provide a conceptual framework addressing fiscal equalization, in the second part I will approach the intergovernmental transfers and the design of the equalization transfer process while in the third section, I will present an overview of the system and its evolution in the post-communist period and the last section will provide the concluding remarks on fiscal equalization. Cuvinte cheie: decentralisation, fiscal equalization, intergovernmental transfers Conceptual framework After 1990s, the countries in transition have been in a process of finding their own path for public sector democratization and construction of a sound public finance management system and fiscal decentralization is one of major importance in the current context of public policies