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Law No. 189 Of 14 October 1998 On Local Public Finances

Original Language Title:  LEGE nr. 189 din 14 octombrie 1998 privind finanţele publice locale

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LEGE no. 189 189 of 14 October 1998 (* updated *) on local public finances ((updated until 17 November 2003 *)
ISSUER PARLIAMENT




--------------- *) The initial text was published in the OFFICIAL GAZETTE no. 404 404 of 22 October 1998. This is the updated form of S.C. "Territorial Electronic Computing Centre" S.A. Piatra Neamt until November 17, 2003 with the amendments and additions made by: EMERGENCY ORDINANCE no. 61 61 of 28 December 1998 ; EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 ; LAW no. 86 86 of 25 May 1999 ; EMERGENCY ORDINANCE no. 216 216 of 29 December 1999 ; EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 ; LAW no. 337 337 of 6 July 2001 ; LAW no. 774 774 of 29 December 2001 . Parliament of Romania adopts legal presence *) --------------- * *) Law no. 189 189 of 14 October 1998 will be repealed with effect from 01 January 2004, as provided for in art. 79 of EMERGENCY ORDINANCE no. 45 45 of 5 June 2003 published in MONITORUL OFFICIAL no. 431 431 of 19 June 2003: (1) This emergency ordinance shall enter into force on January 1, 2004, except for the provisions of art. 59, which enters into force on the date of its publication in the Official Gazette of Romania, Part I. (2) On the date of entry into force of this emergency ordinance, it is repealed Law no. 189/1998 on local public finances, published in the Official Gazette of Romania, Part I, no. 404 404 of 22 October 1998, with subsequent amendments and completions, and any other provisions to the contrary. + Chapter 1 General provisions + Article 1 For the purposes of this law, the following terms and expressions are understood: 1. local public administration authorities-the local councils, the county councils and the General Council of Bucharest, as deliberative authorities, and the mayors, the presidents of the county councils and the general mayor of the municipality Bucharest, as executive authorities; 2. budget article-subdivision of the budget expenditure classification according to the economic nature of the operations in which they materialize and which designate the nature of an expenditure, regardless of the action to which it relates; 3. budget expenditures-expenses approved and made from local budgets, from the budgets of public institutions and services of local interest and from the budgets of activities financed entirely from extra-budgetary income, within and with the destination established by those budgets; 4. budget classification-grouping, in a compulsory order and according to unitary, precisely determined criteria, of incomes and expenditures contained in local budgets, budgets of public institutions and services of local interest and budgets activities financed from extra-budgetary income; it is used both in the development and approval phase of the respective budgets and in their execution, serving to enroll in budgets of income according to their provenance and expenditure in report with the objective or function of which these expenses are intended and the nature of the the economic nature of the operations in which they materialise; 5. budget credit-the amount approved in local budgets, in the budgets of public institutions and services of local interest and in the budgets of activities financed entirely from extra-budgetary income, representing the maximum limit to which they can engage and perform expenses; 6. local public debt-the totality of the payment obligations, internal and external, of the local public administration authority, at some point, coming from loans contracted directly or guaranteed by the local public administration authority in the internal and external capital market. For the purpose of assessing the local public debt, any payment obligation, expressed in currency other than the national currency, is calculated in national currency, using the exchange rate communicated by the National Bank of Romania for the last day of the period of reporting; 6 6 ^ 1. local guarantee-the commitment made by an authority of the local public administration to the creditor institution to pay it a certain amount, in the event of non-execution of the debtor's payment obligations, for internal loans and external contracted by the administrative-territorial units, as well as by the autonomous regions of local subordination or local public service units, to which the authority of the local public administration is the majority shareholder; 6 6 ^ 2. the local public debt register-the document highlighting the situation of the local public debt contracted directly, in chronological order, and which has two components: the sub-register of local public debt and the subregister of external public debt local; 6 6 ^ 3. the register of local guarantees-the document highlighting the situation of local guarantees and having two components: the sub-register of local internal guarantees and the sub-register of local external guarantees; 7. budget deficit-the share of expenses that cannot be covered by the budget revenues of that year, presented in art. 8 8 para. ((1), with the exception of special purpose income and expenditure; 8. opening of budgetary credits-approval communicated to the state treasury by the principal authorising officer, within which the house payments from the local budgets can be made; 9. interest-the price of temporary use of borrowed capital; 10. budget balance-the equality between budget revenues and budgetary expenditures in a budget year; 11. budget surplus-the amount by which the budget revenues exceed budget expenditures for one budget year; 12. budget execution-the activity of collecting budget revenues and carrying out the expenses approved by the budget; 13. house execution of the budget-complex of operations that refers to the collection, preservation and issuance of financial resources for the performance of local public expenditures. At the basis of the house execution of the budget are the following principles: delimitation of the duties of persons who have the use of financial resources from the duties of those who execute their collection and the house unit, according to each budget is concentrated entirely in the account, where financial resources are issued to make the expenses, and it is forbidden to make payments directly from the collected budget revenues; 14. budgetary reserve fund-fund provided for at the expense part of local budgets. The amount of this fund shall be determined with the elaboration and adoption of that budget, intended to finance actions or tasks during the year and to remove the effects of natural disasters; 15. tax-collection of a part of the income and wealth of natural and legal persons, mandatory, non-refundable and without consideration; 16. loan-the amount granted by a creditor to a local public administration authority, refundable at a certain term (maturity), with obtaining an additional amount (interest) in favor of the creditor; 17. fee-the amount paid by a natural or legal person, as a rule for services rendered to it by an economic agent, an institution or a service of public utility; 18. treasury-the totality of money, financial and budgetary operations, carried out by the executive authorities to mobilize the funds necessary to perform their tasks and functions; 19. payment-payment of an amount, carried out by an economic agent or a public or financial institution in order to extinguish a legal obligation; 20. budget revenues-money resources due to local budgets, budgets of institutions and public services of local interest, budgets of activities financed entirely from extra-budgetary income, based on legal provisions, made up of taxes, duties and other payments; 21 21. the transfer of budgetary appropriations-the reduction of the budgetary credit from a subdivision of the budgetary classification which presents the availability and the corresponding increase of another subdivision to which the financial means are insufficient, with compliance with the legal provisions for carrying out those operations; 22. bearing fund-the part of the final annual budget surplus of the local budget, which is constituted at the level of each administrative-territorial unit and is used according to the provisions of this law; 23. broken down amounts-part of some revenues of the state budget, which are allocated to administrative-territorial units in order to balance their own budgets, according to the provisions of this law and the state budget law. ------------- Section 6 of the art. 1 was amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Pct. 6 ^ 1, 6 ^ 2 and 6 ^ 3 of art. 1 were introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Pct. 6 ^ 1 al art. 1 1 was amended by LAW no. 337 337 of 6 July 2001 published in MONITORUL OFFICIAL no. 378 378 of 11 July 2001. + Article 2 (1) The present law establishes the rules on the formation, administration, use and control of financial resources of administrative-territorial units and public institutions and services of local interest. (2) The financial resources of the administrative-territorial units shall be from taxes, taxes and other tax revenues, non-tax revenues, income from capital, allowances and amounts broken down from some state budget revenues, additional allowances to some revenues of the state budget and local budgets, special destination transfers from the state budget and special purpose income. (3) The foundation, sizing and distribution of local public expenditures, by destination and authorising officers, shall be carried out in accordance with the tasks of the local public administration authorities and with the priorities established by the these, with a view to their operation and in the interest of the (4) The formation and use of local public financial resources and the execution account of local budgets are subject to the control of the Court of Accounts, according to the law. + Article 3 The transition by the Government, in the administration and financing of local public administration authorities, of public expenditures as a result of their decentralization and other new public expenditures is made by law, only with the provision of resources financial means necessary to carry out + Article 4 At the basis of elaboration, approval and budget execution stand the principles of local autonomy, balance, reality, annuality and advertising. + Article 5 Local public administration authorities shall have the following powers and responsibilities in relation to local public finances: 1. elaboration and approval of local budgets within the time limits; 2. establishing, finding, controlling, tracking and collecting local taxes and fees, as well as other incomes of administrative-territorial units through specialized own compartments, under the law. 3. tracking the execution of local budgets and rectifying them, during the budget year, under budget balance conditions; 4. establishing and tracking the mode of provision of local public services, including the option of passing or not these services in the responsibility of specialized economic agents or local public services, aiming to make them more efficient in benefit of citizens 5. efficient administration of goods from public or private property of administrative-territorial units; 6. hiring short, medium and long term loans and tracking the payment of the resulting payment obligations; 6 6 ^ 1. the guarantee of medium-and long-term loans and the pursuit of payment by the guaranteed, at maturity, of the payment obligations resulting from those loans; 7. administration of financial resources during the budgetary execution, under conditions of efficiency; 8. the establishment of options and priorities in the approval and performance of local public expenditures; 9. elaboration, approval, modification and follow-up of development programs in perspective of administrative-territorial units as a basis for the management of annual local budgets; 10. organization and follow-up of financial management control on own management, management of public institutions and services subordinated to local councils, county councils and General Council of the Municipality Bucharest. ------------- Section 2 of the art. 5 was amended by EMERGENCY ORDINANCE no. 61 61 of 28 December 1998 published in MONITORUL OFFICIAL no. 517 517 of 30 December 1998. Pct. 6 ^ 1 al art. 5 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 6 (1) Local budgets shall mean the revenue and expenditure budgets of the administrative-territorial units. (2) Local budgets and budgets of public institutions and services of local interest shall be approved as follows: 1. local budgets, by the local councils, the county councils and the General Council of Bucharest, as the case may be; 2. budgets of public institutions and services, financed in whole or in part from local budgets, by the councils referred to in item 1, depending on their subordination; 3. budgets of public institutions and services, financed entirely from extra-budgetary income, by their management body, with the opinion of the principal authorising officer. (3) Each commune, city, municipality, sector of Bucharest, county, respectively Bucharest municipality, prepares the local budget, under conditions of autonomy, according to the law. There are no subordination relations between these budgets. (4) The principal authorising officers shall develop and submit, with the annual draft of the local budget, a forecast of the latter for the next 3 years, as well as the public investment program, detailed on objectives and years of execution. (5) Public institutions, within the meaning of this law, include the authorities of administrative-territorial units, public institutions and public services of local interest, with legal personality, regardless of the way of financing the activity to them. + Article 7 (1) Local public revenues and expenditures shall be grouped according to the classification of public finance indicators, developed by the Ministry of Finance. (2) The classification of the indicators on public finances includes revenues-chapters and subchapters, and at expenses-parts, chapters, subchapters, titles and articles, as well as paragraphs, as the case may be. + Chapter 2 Revenue and expenditure of local budgets + Article 8 (1) The incomes of the local budgets shall be formed from taxes, duties, other incomes and from income with special purpose, set out in Annex no. 1, as well as from quotas and amounts broken down from some state budget revenues, additional allowances to some revenues of the state budget and local budgets and from special destination transfers from the state budget. (2) Local taxes and fees shall be established by the local, county and General Council of Bucharest, as the case may be, within the limits and under the law. (3) Of the income tax, collected at the state budget at the level of each administrative-territorial unit, shall be allocated monthly, within 5 working days from the end of the month in which this tax was collected, a share of 36.5% to the local budgets of communes, cities and municipalities, on the territory of which the tax payers operate, 10% to the county's own budget and 15% at the disposal of the county council for balancing the budgets of communes, cities, municipalities and the county. For the city of Bucharest the share is 61.5% and is distributed in the same term, as follows: 18% to the local budgets of the sectors of Bucharest, 36.5% to the own budget of Bucharest and 7% available to the General Council of Bucharest Municipality, only for balancing the local budgets of its sectors. These percentages apply to the income tax collected at the state budget, at the level of each sector. These quotas can be amended annually by the state budget law. The allocation and transfer operations to the local budgets of the income tax rates shall be carried out by the Ministry of Public Finance through the decentralized public services. (3 ^ 1) Tax and tax payers who have organized stable working points are required to request their tax registration, as tax payers on income from salaries, to the fiscal body in whose territorial area the point of taxation is located. Work. (3 ^ 2) The request is made within 15 days from the date of establishment, for the newly established working points, and for the existing ones, within 15 days from the date of publication of the law approving the present emergency ordinance in the Official Gazette of Romania, Part I. (3 ^ 3) The payers referred to in par. (3 ^ 1) have the obligation to organize the corresponding accounting records for determining the income tax from calculated, retained and paid salaries. (3 ^ 4) The Ministry of Public Finance together with the Ministry of Administration and Interior will develop methodological norms for the application of the above provisions, which will be approved by joint order of the Minister of Public Finance and the Minister administration and internals, within 5 days from the date of publication of the law approving the present emergency ordinance in the Official Gazette of Romania, Part I. (4) The law will establish, starting with 1999, additional quotas on some revenues of the state budget and local budgets, which constitute income of local budgets. (5) The local, county councils and the General Council of the Municipality of Bucharest, as the case may be, establish and approve the additional quotas, provided in par. ((4), within the maximum limits approved by law and according to the needs of the normal functioning of public services of local interest and the performance of the duties incumbent on the local public administration authorities. -------------- Alin. ((3) art. 8 was amended by EMERGENCY ORDINANCE no. 216 216 of 29 December 1999 published in MONITORUL OFFICIAL no. 650 650 of 30 December 1999. Alin. ((3) art. 8 8 was amended by LAW no. 774 774 of 29 December 2001 published in MONITORUL OFFICIAL no. 14 14 of 11 January 2002. Alin. ((3 ^ 1), (3 ^ 2), (3 ^ 3) and (3 ^ 4) of art. 8 were introduced by LAW no. 774 774 of 29 December 2001 published in MONITORUL OFFICIAL no. 14 14 of 11 January 2002. + Article 9 ((1) The amounts collected from the sale as such or from the valorization of the materials resulting from the demolition, dismantling or decommissioning, under the conditions provided by law, of fixed assets or from the sale of material goods belonging to public institutions and services, fully funded from local budgets, after deducting the expenses incurred for these operations, constitute income of local budgets and spill over to them. (2) The amounts collected according to par. (1) by the other institutions and public services of local interest shall be retained by them, in order to carry out investments. (3) The amounts collected from the concession or from the rental of goods belonging to the public or private domain, of local or county interest, constitute income of the local budgets. ((4) The amounts collected from the sale of certain goods belonging to the private domain of the administrative-territorial units constitute special income of the local budgets and are used for the realization of investments from the competence of the authorities local public administration. (5) The amounts collected from the valorization of confiscated assets are made to the local budget, depending on the subordination of the institutions that ordered their confiscation, under the law, after the deduction of the expenses related to the recovery activity. + Article 10 (1) In order to ensure the budgetary balance of some administrative-territorial units, the state budget law can establish amounts broken down from some state budget revenues, as well as criteria for their distribution on the units administrative-territorial. (2) The amounts broken down from some revenues of the state budget and the special purpose transfers from the state budget are approved annually, by the state budget law, for the entire county, respectively of the city of Bucharest. (3) Of the amounts broken down from some state budget revenues, approved annually, a quota of up to 25% is allocated to the county's own budget, and the difference is distributed on communes, cities and municipalities, by the county council, by decision, after consultation of mayors and with technical assistance of the general directorate of public finances and state financial control, depending on the approved distribution criteria. (4) Within the quota referred to in paragraph 1. (3), annually, by the state budget law, the maximum limit is established on each county. (5) Transfers from the state budget to local budgets will be granted for investments financed from external loans, to which the Government also contributes. (6) The proposals for amounts broken down from certain revenues of the state budget, formulated on the basis of the approved criteria, and transfers shall be included in the draft budgets for the entire county, respectively of the city of Bucharest, which shall be presented The Ministry of Public Finance, through the general directions of public finances and state financial control, for correlation with the draft state budget. + Article 11 From the local budgets, social-cultural, sports, youth actions, including cults, actions of local interest for the benefit of the community, maintenance and functioning of the local public administration, expenses with special destination, set out in Annex no. 2, as well as other expenses provided by legal provisions. + Article 12 (1) The county councils, the General Council of Bucharest and the local councils, as the case may be, may approve the collaboration or association for the realization of works and services of local public interest. Collaboration or association is carried out on the basis of conventions or association contracts, in which financial resources are also provided for representing the contribution of each local public administration authority involved. The agreements or contracts of association shall be concluded by the principal authorising officers, under the terms of the mandates approved by each council involved in collaboration or association. (2) The local, county councils and the General Council of the Municipality of Bucharest, as the case may be, may participate with social capital or with goods to companies, for the realization of works and services of local or county public interest, as the case may be. (3) Funds necessary for the application of the provisions ((1) and (2) shall be provided from local budgets. + Article 13 (1) The local, county councils and the General Council of Bucharest Municipality, as the case may be, will create, organize and pursue the provision of public services of local interest, on the basis of technical-economic studies, or through their direct management, by delegating their management to natural or legal persons by concluding appropriate contracts. (2) Provisions of para. (1) does not absolve the local public administration authorities from the responsibilities provided in art. 5. + Article 14 (1) The local budgets shall include the budgetary reserve fund at the disposal of the local, county and General Council of Bucharest Municipality, as the case may be, in the share of up to 5% of the total expenses. It may be used, on the basis of the decisions of those councils, for the financing of actions or tasks which have occurred during the year, and for the removal of the effects of natural disasters. (2) The budgetary reserve fund referred to in par. (1) may be increased, during the year, by the local, county council and the General Council of the Municipality of Bucharest, as the case may be, from the availabilities of budget credits that are no longer necessary until the end of the year. + Article 15 The local, county councils and the General Council of Bucharest Municipality, as the case may be, may approve and use, in their entirety, the amounts collected from their own income above those approved by the local budgets, to supplement the expenses provided for in these budgets, under the following conditions: 1. to exceed the receipts to be made on total own incomes approved by the respective local budget and to remain until the end of the year; 2. the respective budgets shall not have outstanding loans, as well as unpaid interest and commissions, related to loans contracted and/or guaranteed. ------------- Section 2 of the art. 15 was amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 16 ((1) The expenses for investments of counties, municipalities, cities and communes, as the case may be, and of public and local public subordination institutions and services, which are financed, according to the law, from local budgets and from loans, shall be enroll in the investment program of each administrative-territorial unit, which is approved as an annex to the local budget by the local, county council and the General Council of Bucharest, as the case may be. (2) The investment objectives and other expenses assimilated to investments shall be included in the investment program, only if, in advance, the technical-economic documentation, namely the foundation notes on the necessity and the opportunity carrying out investment expenses, have been developed and approved according to the legal provisions. (3) The principal authorising officers shall set the priorities in the allocation of the amounts per each objective entered in the investment program, within the limits of the funds contained in the draft budget with this destination, while ensuring the use of the rational and efficient of these funds, as well as the achievement of investment objectives within the approved execution durations. (4) In the investment program, the following investment objectives are nominated, as well as the new investment objectives. Investment programmes shall be included in a global position, under the name of other investment expenditure: real estate purchases; independent facilities; design costs for the development of pre-feasibility studies and studies of feasibility, related to new investment objectives; design and execution expenses on consolidations and interventions to prevent or eliminate the effects of accidental actions and natural disasters: earthquakes, floods, slips, collapses and land subsidence, fires, technical accidents as well as other expenses related to the realization of investments-drilling works, land mapping, photogrammetry, seismological determinations, consulting, technical assistance and other expenses assimilated to investments-, according to the law. The overall position shall be detailed by separate lists by the principal authorising officer, on the basis of substantiation notes, which will include elements relating to the necessity, opportunity and other indicators characteristics of such investments, and is approved by the local, county council and the General Council of Bucharest Municipality, as the case may be, with the local budget. (5) The technical and economic documentation of the new investment objectives, the financing of which is fully or in addition to the local budgets, as well as those from internal and external loans, contracted directly or guaranteed by the authorities local public administration, is approved, as the case may be, by the local, county councils and the General Council of Bucharest. (6) Technical-economic documentation of the new investment objectives, the financing of which shall be provided in addition from transfers from the state budget under the provisions of art. 10 10 para. (5), as well as in full or in addition to external loans guaranteed by the Government shall be approved, with the prior consent of the Ministry of Public Finance, by: 1. the county councils and the General Council of Bucharest, for their own investments and for those of public institutions and services under their authority, whose value is between 2 billion lei and 80 billion lei; 2. local councils of municipalities, for their own investments and for those of public institutions and services under their authority, whose value is between 2 billion lei and 45 billion lei; 3. local councils of cities, for their own investments and for those of public institutions and services under their authority, whose value is between 2 billion lei and 35 billion lei; 4. the local councils of the communes and those of the sectors of Bucharest, for their own investments and for those of the public institutions and services under their authority, whose value is between 2 billion lei and 25 billion lei. (7) The principal authorising officers, heads of institutions and public services of local subordination, who have the status of secondary or tertiary authorising officers for their own investments whose value does not exceed 2 billion lei, approve the technical-economic documentation, with the prior opinion of the local, county council and the General Council of Bucharest Municipality, as the case may be. (8) Technical-economic documentation for new investment objectives, the values of which exceed the maximum ceilings provided in par. (6), approved by the Government. (9) Technical-economic documentation for investments intended to prevent or eliminate the effects caused by accidental actions and natural calamities, elaborated and endorsed according to the legal provisions, as well as the foundation notes on the other investment expenditure contained in the global position other investment expenditure is approved by the principal authorising officers. (10) After approval of technical-economic documentation according to the provisions of par. ((5)-(9), the updating of the total value of each investment, according to the evolution of the price indices, shall be made on liability and with the approval of each authorising officer as an investor. ((11) The value of the new investment objectives, as the case may be, of investments intended to prevent or eliminate the effects of accidental actions and natural disasters, whose technical-economic documentation has been approved according to the powers provided for in this Article, is estimated until the execution of the works, according to the legal provisions on public procurement. (12) The value limits on the powers of approval of the technical-economic documentation of the new investment objectives can be modified by Government decision, depending on the evolution of the price indices. -------------- Alin. ((5) art. 16 was amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 17 (1) In local budgets they cannot register and no expenses can be approved without providing the appropriate financial resources. (. The expenditure referred to in the chapters and expenditure items shall be of a precise and limited destination. (3) In the course of budgetary execution, in cases where proposals are made to develop normative acts whose application attracts the reduction of incomes or the increase of expenses approved by local budgets, the initiators have the obligation to provide the means necessary to cover the revenue gaps or expense increase. + Article 18 ((1) Allowances for approved personnel expenses may not be increased by transfers of budget appropriations. ((2) The transfer of budgetary appropriations from one chapter to another chapter of the budgetary classification shall be approved by the local council, the county and the General Council of the Municipality of Bucharest, as the case may be, based on the corresponding justifications of the principal of loans and may be made before the expenses are committed, starting with the third quarter of the budget year. ((3) The transfers of budgetary appropriations within the same budgetary chapter shall be within the competence of each principal authorising officer, for his own budget and the budgets of subordinate public institutions and services, and may be carried out prior to employment. expenses, starting with the third quarter of the budget year. + Chapter 3 Development, approval and execution of local budgets + Article 19 (1) The projects of local budgets shall be drawn up on the basis of draft budgets of local public administration, institutions and public services of local subordination. (2) The main authorising officers of the local budgets will initiate actions to implement the budgetary financing, on the basis of programs that will be drawn up by the public institutions and services of local interest, in order to finance some actions, objectives, projects. (3) The programs analyzed by the main authorising officers will be proposed for approval as annexes to the local budget. + Article 20 (1) The main authorising officers of the local budgets shall submit the projects to the local budgets, balanced, to the general directorates of public finances and to the state financial control, until May 15 of each year, to submit to The Ministry of Public Finance projects the projects of local budgets on the entire county, respectively of the city of Bucharest, at the latest until June 1 of each year. (2) The Ministry of Public Finance examines the proposals of amounts broken down from some state budget revenues and special purpose transfers, contained in the projects of local budgets, and, with the consent of the Government, communicate, until 1 July, the general directorates of public finances and state financial control the limits of the amounts broken down from some state budget revenues and special purpose transfers, as well as the criteria for their distribution on administrative-territorial units, in order to finalize the draft budgets local by the principal authorising officers. The limits of the amounts are transmitted, for information, to the county councils and the General Council of (3) The principal authorising officers, on the basis of the limits of the amounts received according to (2), develop and submit to the general directorates of public finances and state financial control, until July 20, the new proposals for the draft budget, and they will transmit the projects to the local budgets as a whole the county and the city of Bucharest to the Ministry of Public Finance until August 1 of each year. (4) The projects of the local budgets shall be submitted for approval to the local, county and General Council of Bucharest, as the case may be, within a maximum of 30 days from the entry into force of the state budget law. During the budget year, the local, county councils and the General Council of Bucharest Municipality, as the case may be, may approve the rectification of the local budgets, within 30 days from the entry into force of the rectification of the state budget, such as and as a result of substantiated proposals of the principal authorising officers. + Article 21 (1) The local budget project shall be published in the local press or shall be displayed at the city hall, after which, within 15 days, it is subject to the approval of the local council, county and General Council of Bucharest, as the case may be (2) The draft of the local budget shall be accompanied by the report of the mayor, the president of the county council or the general mayor of Bucharest, as the case may be, as well as the appeals filed by the inhabitants, within 15 days from the date publication or display of the project. (3) The local, county council and the General Council of the Municipality of Bucharest, as the case may be, shall rule on appeals and adopt the draft local budget, after it has been voted on chapters, subchapters, articles and annexes. + Article 22 The income and expenses provided in the local budgets shall be distributed by quarters, depending on the legal deadlines for the collection of incomes and the period during which the expenses are necessary, and shall be approved by: 1. Ministry of Public Finance, for the amounts broken down from some state budget revenues and for transfers from this budget, based on the proposals of the main authorising officers of local budgets, transmitted by the general directorates of public finances and state financial control, within 20 days from the entry into force of the state budget law; 2. main authorising officers of local budgets, for their own budgets and budgets of subordinated public institutions and services, within 15 days from the approval of the amounts provided for in item 1. + Article 23 On the basis of the approved local budgets, under the law, the local, county councils and the General Council of Bucharest Municipality, as the case may be, the general directions of public finances and state financial control Public finances budgets on the whole of each county, respectively of the city of Bucharest, with the distribution by quarters of incomes and expenses, grouped within each county and of the city of Bucharest on communes, cities, municipalities, sectors of Bucharest and its own budget, on the structure of the classification budget established by the Ministry of Public Finance + Article 24 (1) The main authorising officers of the local budgets are the presidents of the county councils, the general mayor of Bucharest and the mayors of the other administrative-territorial units. (2) The heads of public institutions or services with legal personality subordinated to each local council, county and General Council of Bucharest Municipality are, as the case may be, secondary or tertiary loan officers. + Article 25 (1) The principal authorising officers shall allocate the budgetary appropriations, approved by the local budgets, on the lower hierarchical units, in relation to their tasks, contained in the respective budgets, and approve the expenditure from the budgets own, in compliance with legal provisions. (2) The secondary authorising officers shall allocate the approved budget appropriations on the lower hierarchical units, whose leaders are tertiary authorising officers, and approve the expenditure of their own budgets, in compliance with the provisions Legal. (3) The tertiary authorising officers shall use the budgetary appropriations allocated to them, only for the needs of the units they lead, according to the provisions of the approved budgets and under the conditions established by the legal provisions. (4) The authorising officers have the obligation to hire and use the budget credits only within the limits of the approved provisions and destinations, for expenses strictly related to the activity of the respective public institutions or services and with compliance with legal provisions (5) Authorising officers may delegate the right to approve the use of budget appropriations. + Article 26 (1) The principal, secondary and tertiary authorising officers shall be responsible for: 1. elaboration of the draft own budget; 2. tracking the revenue collection mode; 3. the necessity, appropriateness and legality of the commitment and use of budgetary appropriations within the limit and the destination approved by the budget; 4. the integrity of assets under management; 5. organization and keeping up to date of accounting and forward presentation of accounting balance sheets and budget execution accounts. ((2) The commitment and performance of the budget appropriations approved in the budget shall be approved by the authorising officer and shall be carried out only with the prior internal preventive financial control visa, which certifies compliance with the legal provisions, compliance with the approved budget appropriations and their destination. (3) In case of refusal of internal preventive financial control visa, referred to in par. (2), the authorising officer may order, on his own responsibility, the employment and performance of those expenses. + Article 27 Transfers to local budgets, within the limits provided for in the state budget, shall be made by the Ministry of Public Finance, by the general directions of public finances and state financial control, at the request of the principal credits, depending on the needs of the budget execution. + Article 28 The financing of expenditure from local budgets shall be ensured through credit openings by their main authorising officers, within the limits of the budgetary appropriations approved by the local budgets and according to the destination established in relation to the use of the the amounts made available previously and in compliance with the legal provisions governing the performance of those expenses. + Article 29 (1) The performance of budgetary expenditures shall be made only on the basis of supporting documents, confirming the contractual or convention commitments, the receipt of material goods, the provision of services, the execution of works, the payment of salaries and other money rights, payment of budgetary obligations and other obligations. (2) The authorising officers may make advance payments of up to 30% for certain categories of expenses, under the legal provisions. + Article 30 The main authorising officers prepare and submit for approval, the county councils, the General Council of Bucharest and the local councils, as the case may be, by May 31 of the following year, the annual accounts of execution of budgets local, in the following structure: a) on income: 1. budgetary provisions approved initially; 2. final budgetary provisions; 3. receipts made; b) expenditure: 1. loans originally approved; 2. final credits; 3. payments made. + Article 31 Quarterly, the principal authorising officers shall draw up accounting reports on the budgetary execution, which shall be submitted to the general directorates of public finances and state financial control; after their verification and centralization, they shall prepare and submit to the Ministry of Public Finance the centralized accounting report on the execution of local budgets, on the whole, at the deadlines and according to the norms established by it. + Article 32 (1) The annual surplus of the local budget, resulting at the end of the budget year, after making the regulations within the limits of transfers from the state budget, shall be used, in order, for: 1. repayment of any outstanding loans, payment of interest and commissions related to them; 2. establishment of the bearing fund. (2) The bearing fund shall be kept in a separate account, open to each administrative-territorial unit, to the territorial units of the state treasury and can be used, temporarily, to cover some house gaps coming from gaps between the revenues and expenses of the current year, as well as for the final coverage of the eventual budget deficit resulting from the end of (3) The bearing fund may also be used to finance investments from the competence of local public administration authorities or for the development of local public services in the interest of the community. (4) Use of the bearing fund under the conditions of par. (2) and (3) are approved by the local council, county and the General Council of Bucharest, as the case may be. + Article 33 The house execution of the local budgets is carried out through the territorial units of the state treasury, highlighting in distinct accounts: 1. budget revenues on the structure of the budget classification; 2. the expenditure within the limits of the approved budget appropriations and the intended destination; 3. other financial operations of the budgetary authorising officers ordered by them; 4. the extra-budgetary income and the expenses ordered from them, on local public institutions and categories of resources. + Article 34 The methodology for the elaboration and execution of local budgets is established by the Ministry of Public Finance. + Chapter 4 Finances of public institutions and services + Article 35 ((1) The financing of current and capital expenditures of public institutions and services of local interest shall be ensured as follows: 1. in full from the local budget, depending on the subordination; 2. from extra-budgetary income and from subsidies granted from the local budget, depending on the subordination; 3. in full from extra-budgetary income. (2) Public institutions and services, fully financed from the local budget, shall pay the revenues of this budget. + Article 36 (1) Public institutions and services of local interest may also use, for the conduct and extension of their activity, material and money means received from legal and natural persons, in the form of donations and sponsorships, in compliance with legal provisions. ((2) The funds granted by legal and natural persons in order to participate together with the local public administration authorities in the financing of public interest actions, as well as the funds received under the conditions of par. (1), in the situation of public institutions and services, fully financed from the budget, are paid directly to the local budget from which they are financed. With these amounts the budget credits of the local budget are increased and the funds will be used according to the provisions of art. 28 28 and in compliance with the destinations established by the transmitter. + Article 37 The financing of the expenses of some public institutions, regardless of subordination, is ensured both from the state budget and from the budgets of some administrative-territorial units, only in cases where, by the annual budgetary law or by special laws, the determine the categories of expenditure to be financed by each budget. + Article 38 (1) The non-budgetary incomes of public institutions and services of local interest, financed under the conditions of art. 35 35 para. ((1) pt. 2 and 3, shall be collected, administered, used and accounted for by them. (2) The own incomes of the budgets of public institutions and services of local interest, financed according to art. 35 35 para. ((1) pt. 2 and 3, come from taxes, rents, cultural and sports events, artistic competitions, publications, editorial performances, studies, projects, valorization of products from own activities or annexes, service supplies and others. + Article 39 (1) Excedes resulting from the execution of budgets of public institutions and services of local interest, financed under the conditions of art. 35 35 para. ((1) pt. 2, regularize at the end of the year with local budgets, within the limits of the amounts received from them, if the law does not provide otherwise (2) The annual balances resulting from the implementation of the budgets of public institutions and services of local interest, fully financed by extra-budgetary income, remain at their disposal, to be used in the following year with the same destination. (3) The local, county councils and the General Council of Bucharest, as the case may be, may decide that the annual balances resulting from the execution of the budgets of subordinated public institutions and services, fully financed by extra-budgetary income, shall be is taken over to the local budget, after deducting the anticipated amounts and payment obligations. + Article 40 (1) The house execution of the budgets of public institutions and services of local interest shall be carried out through the territorial units of the state treasury. ((2) Payments for investments of public institutions of local interest, regardless of the form of financing, shall be made through the territorial units of the state treasury, on the basis of the investment list, of funds approved for capital expenditures and in compliance with the legal provisions on investments and their settlement. + Article 41 The local, county councils and the General Council of Bucharest, as the case may be, can approve the establishment of fully financed activities from extra-budgetary income in addition to some public institutions and services, while establishing the activity, income categories, nature of expenses, system of organization and functioning of these activities. + Article 42 ((1) The revenue and expenditure budgets for activities financed entirely from extra-budgetary income shall be drawn up with the budget of the institution or public service of local interest to which they belong and shall be approved with their budget, in Art. 6 6 para. ((2) 2. (2) The revenues and expenses of activities financed entirely from extra-budgetary income shall be grouped on the basis of the classification of public finance indicators, approved by the Ministry of Public Finance. (3) In case of non-realization of the revenues provided for in the budgets of activities financed entirely from extra-budgetary income, the expenses will be made within the income realized (4) The annual balances, resulting from the execution of revenue and expenditure budgets of activities financed entirely from extra-budgetary income, shall be carried over to the following year with the same destination or shall be taken as income to the local budget, under the conditions Art. 39 39 para. ((3). + Article 43 ((1) Where, at the establishment of public institutions and services of local interest or activities financed entirely from extra-budgetary income, they do not have sufficient funds, on the basis of thoroughly substantiated documentation, local, county councils and the General Council of Bucharest, as the case may be, may grant temporary loans from the local budget, on the basis of convention. (2) Loans granted under the conditions of par. ((1) will be repaid in full within one year from the date of granting. + Article 44 (1) For the functioning of local public services, created in the interest of natural and legal persons, local, county councils and the General Council of Bucharest Municipality, as the case may be, establish special taxes. (. The amount of the special charges shall be fixed annually and shall cover at least the amounts invested and the current expenses of maintenance and operation of these services. (3) The special charges, established according to the provisions of this Article, constitute special income of the local budgets, being used for the purposes for which they were established. (4) The remaining amounts not used from the special charges, established as the difference between the revenue received and the payments made, shall be carried over to the following year with the same destination, with the end of the budget year. The same regime applies to other special purpose income. + Article 45 (1) Special charges shall be collected only from natural and legal persons who use the local public services for which those fees have been established. (2) By the regulation approved by the local, county councils and the General Council of the Municipality of Bucharest, as the case may be, the conditions under which the special charges may be levied shall be determined, the way in which the agreement of the payers, as well as how to distribute them. (3) The decisions taken by the local, county councils and the General Council of the Municipality of Bucharest, as the case may be, in connection with the distribution of special taxes on paying individuals and legal entities will be displayed at their headquarters or by publication. (4) Against these judgments any interested person may appeal within 15 days of their display or publication. After the expiry of that period, the Council which adopted the judgment shall meet and discuss the appeals received. + Article 46 The finding, settlement and tracking of the collection of special taxes is carried out through the specialized compartments of the town halls, county councils and the Bucharest City Hall, as the case may be. + Article 47 (1) Public services of local interest that carry out activities of an economic nature have the obligation to calculate, record and recover the physical and moral wear of the fixed assets related to these activities, by tariff or price, according to the law. ((2) The amounts representing the depreciation calculated for these fixed assets shall be used to make investments in that field and shall be distinguished separately in the investment programme as a source of their financing. (3) Activities of an economic nature, for which the depreciation of fixed assets is calculated, shall be determined by Government decision. + Chapter 5 Loans contracted by local public administration authorities + Article 48 (1) The local, county councils and the General Council of Bucharest Municipality, as the case may be, may approve the contracting or guarantee of domestic or external loans, in the medium and long term, for the realization of public investments of local interest, such as and for the refinancing of local public debt, in accordance with this Chapter. (2) The local, county councils and the General Council of Bucharest Municipality, as the case may be, decide to contract or guarantee loans, with the vote of at least two thirds of the members who compose them. (3) Local public debt, committed under the conditions of par. ((1), is a general obligation to be reimbursed, according to the agreements concluded, from the resources at the disposal of the administrative-territorial unit, except for transfers from the state budget with special destination. (4) The local public debt instruments are mainly the following: 1. securities; 2. loans from commercial banks or other credit institutions. (5) The issuance and launch of securities may be made directly by the local public administration authorities or through agencies or other specialized institutions. (6) The local, county councils and the General Council of Bucharest Municipality, as the case may be, may commit internal loans without the Government guarantee, according to the provisions of this chapter, provided that the Ministry of Finance Public. (7) External loans will be contracted or guaranteed by the local public administration authorities only with the approval of the authorization commission, established on the basis of Government Decision no. 611/1999 * *) on the establishment and composition of the Commission for the authorization of the contracting of external loans by the local public administration authorities. -------------- Alin. ((1), (2) and (7) of art. 48 were amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. * *) Government Decision no. 611/1999 has been repealed by JUDGMENT no. 978 978 of 4 October 2001 published in MONITORUL OFFICIAL no. 656 656 of 18 October 2001. + Article 49 (1) The due rates for the contracted loans, interest and commissions due by the administrative-territorial units shall be provided in the local budget. ((2) Loans contracted by administrative units, autonomous regions of local subordination or local public service units, to which the authority of the local public administration is the majority shareholder, may be guaranteed by the authority of the local public administration by any source of revenue, except provided for in art. 48 48 para. ((3). Any guarantee by income becomes valid and applies from the moment of granting the guarantee; the income that is constituted in the guarantee and which are collected at the local budget will be subject to the conditions of the respective guarantee agreement, which will be apply as a matter of priority to any claims of third parties to the authority of the respective local public administration, regardless of whether those third parties know or do not know the guarantee agreement. The document by which the guarantee agreement is concluded by income must be registered at the city hall or, as the case may be, at the respective county council and the (3) All loan or guarantee agreements concluded according to the provisions of this law will be considered to be fully authorized and will constitute obligations that may be imposed on the respective local budgets. -------------- Alin. ((2) and (3) of art. 49 were amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Alin. ((2) art. 49 49 was amended by LAW no. 337 337 of 6 July 2001 published in MONITORUL OFFICIAL no. 378 378 of 11 July 2001. + Article 50 (1) The local public debt does not represent obligations or liabilities of the Government and it will be reimbursed exclusively from the income through which the respective loan was guaranteed by the local public administration authorities. (2) Documents that provide proof of local public debt shall include a clause by which the administrative-territorial unit undertakes to repay the debt and to pay interest and commissions related to this debt only from the income of the authority the respective local public administration, without the Government having any obligation to pay and without the credibility or the tax capacity of the Government being used to guarantee the repayment of the debt of the administrative-territorial unit, interest payment and related fees. (3) Documents that prove local public debt, which do not comply with the provisions of par. ((2), shall not be considered valid. + Article 51 (1) Local public administration authorities shall be prohibited from access to credit or guarantee any kind of loan, if the total annual debts representing the rates due on loans contracted and/or guaranteed, interest and commissions related to them, including the loan to be employed and/or guaranteed in that year, exceeds the limit of 20% of the total current income of local budgets, according to Annex no. 1 1, including the rates broken down from income tax. (2) For the purpose of calculating this limit, for loans contracted and/or guaranteed, with a variable interest rate, the calculation will be made using the interest rate valid on its date. (3) In order to calculate this limit, the loans granted in foreign currency will be taken into account at the value of the exchange rate communicated by the National Bank of Romania at the time of the calculation. ------------- Alin. ((1) art. 51 was amended by EMERGENCY ORDINANCE no. 216 216 of 29 December 1999 published in MONITORUL OFFICIAL no. 650 650 of 30 December 1999. Amendment of para. ((1) of art. 51 51 referred to in point 2 2 of art. 1 of EMERGENCY ORDINANCE no. 216 216 of 29 December 1999 has been repealed by LAW no. 774 774 of 29 December 2001 published in MONITORUL OFFICIAL no. 14 14 of 11 January 2002. Alin. ((1) and (2) of art. 51 were amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Alin. ((1) art. 51 51 was amended by LAW no. 337 337 of 6 July 2001 published in MONITORUL OFFICIAL no. 378 378 of 11 July 2001. + Article 52 (1) The total amount of the debt contracted by the local public administration authority shall be entered in the register of the local public debt of this authority and shall be reported annually by the accounting accounts. (2) The register of local public debt will include information that specifies the total amount of debts of local public administration authorities, as well as the breakdown of debts and other information established by methodological norms on the register of local public debt issued by the Ministry of Public Finance. + Article 52 ^ 1 (1) The total amount of guarantees issued by the local public administration authority shall be entered in the register of local guarantees of this authority and shall be reported annually by accounting accounts. (2) The register of local guarantees shall include information specifying the total amount of guarantees issued by the authority of the local public administration, as well as the detail of the guarantees and other information established by methodological rules on the register of of the local guarantees, issued by the Ministry of Public Finance. -------------- Art. 52 ^ 1 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 53 (1) If, during the execution, temporary house gaps occur as a result of the gap between local budget revenues and expenditures, they may be covered by interest-free loans from the availability of the general account of state treasury, only after the use of the bearing fund. (2) The total value of the loan that can be employed by the local public administration authorities according to the provisions of para. ((. is subject to the following limits: 1. shall not exceed 5% of the total estimated revenues to be collected during the fiscal year in which the loan is made; 2. under the provisions of section 1, local public administration authorities cannot commit higher loans than funds they can repay during the same fiscal year. (3) The reimbursement of the funds borrowed according to the provisions of this Article will be guaranteed with the revenues estimated to be collected in the respective fiscal year, in compliance with the guarantee, by income, of the other local public debts. + Article 53 ^ 1 (1) After contracting and/or guaranteeing internal and/or external loans the local public administration authorities have the obligation to transmit to the Ministry of Public Finance, within 10 days from the date of entry into force of the loan respectively, copies of each primary document attesting, as the case may be: a) contracting/guaranteeing the loan; b) the addendum to the loan/guarantee agreement/agreement, if changes have been made to it, in compliance with the contractual clauses. (2) During the period of repayment of the contracted/guaranteed loan, the reporting of data on the development of loans on local public debt will be carried out monthly, within 20 days from the end of the reporting month. ------------- Art. 53 ^ 1 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 54 (1) The activity of local public administration authorities shall be subject to exceptional verification by the Court of Auditors, according to the provisions of this Article, in the following situations: 1. the authority of the local public administration shall not reimburse all its short-term payment oblibations until the end of the fiscal year in which the loans were committed; 2. if, at a certain time during the fiscal year, the short-term debts of the local public administration authority exceed the limit set at art. 53 53 para. ((2) 1. (2) The Court of Auditors shall request the local public administration authorities which are in one of the situations specified in par. (1) to draw up and submit a recovery plan, whereby it undertakes to submit to the provisions of art. 53 53 para. (2) within 12 months. (3) The Ministry of Public Finance may grant from the availabilities of the general account of the state treasury loans with interest to the local public administration authorities, within the framework of the recovery plan, provided that they commit to reimbursement of these funds within a period set by the Ministry of Public Finance, but which cannot exceed 2 years. + Chapter 6 Transitional and final provisions + Article 55 The government can provide guarantees on external loans contracted by local public administration authorities, under the provisions of the Law on Public Debt. + Article 56 (1) The budgetary exercise is annually, coincides with the calendar year and ends on the basis of methodological norms developed by the Ministry of Public Finance. ((. The implementation of the budget shall end on 31 December of each year. Any uncollected income and any expenses not made until December 31 will be charged or will be carried out, as the case may be, to the local budget account for the following year. (3) Unused budget appropriations until the closing of the year are cancelled by law. (4) All the operations of receipts and payments, made during a year in the account of the local or county budget, belong to the corresponding exercise of the respective budget. + Article 57 (1) It is forbidden to make payments directly from the income collected, except when the law provides otherwise. (2) No expenditure can be entered in the local budget nor can it be carried out from this budget, unless there is a legal basis for such expenses. + Article 58 Financial oblations resulting from cooperation agreements, cooperation, association, twinning as well as adherence to domestic and international associations of local public administration authorities, determined by local, county and county councils. The General Council of Bucharest Municipality, as the case may be, under the law, shall be borne from their local budgets. + Article 59 (1) Local budgets and budgets of local public institutions and services are approved budget credits within which they can engage and perform expenses and represent maximum limits, which cannot be exceeded. (2) The use of budgetary appropriations for destinations other than those approved shall, under the law, entail liability of the guilty. + Article 60 It is forbidden for local public institutions to carry out receipts and payments operations through commercial banks. + Article 61 The balance of the treasury fund constituted at the level of the county council and the General Council of Bucharest will be used, until liquidation, for the realization of public investments of county interest, with the approval of the county council and, respectively, of the General Council of Bucharest Municipality. + Article 62 If local budgets were not approved at least 3 days before the budget year expires, local budgets of the previous year still apply until new budgets are approved, but no later than 30 days after entry into the budget. force of the state budget law. + Article 63 (1) It constitutes the following facts if, according to the criminal law, they are not considered crimes: 1. non-compliance with 15 15, art. 16 16 and art. 30 30; 2. non-compliance with 17 17, art. 18 18, art. 31 31 and art. 59 59; 3. non-compliance with 20 20, art. 25 25 para. ((4), art. 26 26, art. 28 28, art. 51 51 para. ((1), art. 57 57 and art. 60. 3 3 ^ 1. non-compliance with 48 48 para. ((7) and art. 53 ^ 1 para. ((1) and (2). ((2) The contraventions referred to in point 1 is sanctioned with a fine of 1,500,000 lei to 4,500,000 lei, those of item 2, with a fine of 2,500,000 lei to 5,000,000 lei, those of item 3, with a fine from 3,500,000 lei to 7,000,000 lei, and those from item 3 ^ 1, with a fine from 25,000,000 lei to 50,000,000 lei. The level of these fines can be updated by Government decision. (3) The finding of contraventions and the application of fines shall be made by the Court of Auditors, the Ministry of Public Finance and other bodies empowered by law. -------------- Pct. 3 ^ 1 al para. ((1) art. 63 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Alin. ((2) art. 63 was amended by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 64 Contraventions provided for in art. 63 the provisions of Law no. 32/1968 *) on the establishment and sanctioning of contraventions, except art. 25-27. -------------- Law no. 32/1968 has been repealed by ORDINANCE no. 2 2 of 12 July 2001 published in MONITORUL OFFICIAL no. 410 410 of 25 July 2001. + Article 64 ^ 1 They constitute crimes and are punishable by imprisonment from 6 months to 5 years the following facts: a) the use of funds from contracting local public debt for purposes other than those for which they were approved; b) the provision of erroneous data for the substantiation of the documentation presented, in order to obtain the authorization for contracting/guaranteeing external loans. -------------- Art. 64 ^ 1 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. + Article 65 Annexes no. 1 and 2 are an integral part of this law. + Article 66 (1) This law shall enter into force on January 1, 1999, except for the provisions of art. 5 5 section 2. (2) The authorities of the local public administration are obliged, during 1999, to establish and organize their own specialized compartments for the exercise of their duties according to art. 5 5 section 2. (3) The prefects of the counties and the heads of the general directorates of public finances and of the county state financial control and of the city of Bucharest will provide the necessary support for the organization by the local public administration authorities their own specialty compartments. (4) Of the amounts broken down from some revenues of the state budget, the county councils, with the specialized technical assistance of the general directions of public finances and state financial control, will ensure, in accordance with the provisions of art. 10 10 para. (3), the necessary financial resources, including for the establishment and organization of specialized compartments of local councils. (5) Until the organization by the local public administration authorities of the specialized departments, their duties regarding the establishment, finding, control, tracking and collection of taxes, fees and other income of local budgets, including late increases and fines, the resolution of objections, appeals and complaints made to the acts of control and taxation, and the execution of budgetary claims will be carried out, during 1999, by the territorial fiscal bodies of the Ministry of Public Finance. Until the actual takeover by the local public administration authorities of the mentioned activities, the establishment on taxpayers, individuals or legal entities, taxes and local taxes will be made by the territorial fiscal bodies of To the Ministry of Public Finance, with the opinion of the mayors, respectively of the presidents of the county councils, Visa refusal will be motivated in writing. (6) Until December 31, 1999, depending on the organization of its own specialized compartments, the local and county councils, as well as the General Council of the Municipality of Bucharest will take over, each, on the basis of protocol, from the bodies territorial fiscal of the Ministry of Public Finance, the exercise of the duties provided ((4). -------------- Art. 66 was amended by EMERGENCY ORDINANCE no. 61 61 of 28 December 1998 published in MONITORUL OFFICIAL no. 517 517 of 30 December 1998. Article 66 was amended by LAW no. 86 86 of 25 May 1999 published in MONITORUL OFFICIAL no. 246 246 of 1 June 1999 as follows: para. ((5) and (6) are amended and become para. (5), and para. (7) becomes para. ((6). + Article 67 Within 90 days from the entry into force of this emergency ordinance the Ministry of Public Finance, with the opinion of the Department for Local Public Administration, will propose to the Government, on the basis and for the application of the provisions of art. 5 5 section 2 2, corresponding amendment of the provisions Government Ordinance no. 11/1996 * *) on the execution of budgetary claims, published in the Official Gazette of Romania, Part I, no. 23 23 of 31 January 1996, approved and amended by Law no. 108/1996 , published in the Official Gazette of Romania, Part I, no. 251 251 of 17 October 1996, amended and supplemented by Government Ordinance no. 53/1997 ** **), published in the Official Gazette of Romania, Part I, no. 224 224 of 30 August 1997, of the provisions Government Ordinance no. 68/1997 on the procedure for the preparation and submission of tax and tax declarations, published in the Official Gazette of Romania, Part I, no. 227 227 of 30 August 1997, approved and amended by Law no. 73/1998 , published in the Official Gazette of Romania, Part I, no. 142 142 of 8 April 1998, amended and supplemented by Government Ordinance no. 78/1998 , published in the Official Gazette of Romania, Part I, no. 313 of 27 August 1998, of the provisions Government Ordinance no. 70/1997 on fiscal control, published in the Official Gazette of Romania, Part I, no. 227 227 of 30 August 1997, of Law no. 105/1997 ***) for the resolution of objections, appeals and complaints on the amounts found and applied by the acts of control or taxation of the bodies of the Ministry of Finance, published in the Official Gazette of Romania, Part I, no. 136 136 of 30 June 1997. ------------- Art. 67 was introduced by EMERGENCY ORDINANCE no. 61 61 of 28 December 1998 published in MONITORUL OFFICIAL no. 517 517 of 30 December 1998. * *) Government Ordinance no. 11/1996 has been repealed by ORDINANCE no. 61 61 of 29 August 2002 published in MONITORUL OFFICIAL no. 644 644 of 30 August 2002. ** **) Government Ordinance no. 53/1997 has been repealed by ORDINANCE no. 61 61 of 29 August 2002 published in MONITORUL OFFICIAL no. 644 644 of 30 August 2002. *** ***) Law no. 105/1997 has been repealed by EMERGENCY ORDINANCE no. 13 13 of 26 January 2001 published in MONITORUL OFFICIAL no. 62 62 of 6 February 2001. + Article 68 The date of entry into force of this Law shall be repealed: cap. III "Elaboration, approval, execution and completion of the execution of local budgets" and other provisions regarding local budgets in Law no. 72/1996 * *) on public finances, published in the Official Gazette of Romania, Part I, no. 152 of 17 July 1996; head. VIII "Administration of public finances" Local Public Administration Law no. 69/1991 **), republished in the Official Gazette of Romania, Part I, no. 79 79 of 18 April 1996; Decree of the State Council no. 151/1975 ***) on the self-financing of some activities of state institutions -for the provisions on public institutions and local subordination activities ", published in the Official Bulletin no. 130 130 of 12 December 1975, and any other provisions to the contrary. ------------- Art. 68 was introduced by EMERGENCY ORDINANCE no. 61 61 of 28 December 1998 published in MONITORUL OFFICIAL no. 517 517 of 30 December 1998. * *) Law no. 72/1996 has been repealed by LAW no. 500 500 of 11 July 2002 published in MONITORUL OFFICIAL no. 597 597 of 13 August 2002. ** **) Law no. 69/1991 has been repealed by LAW no. 215 215 of 23 April 2001 published in MONITORUL OFFICIAL no. 204 204 of 23 April 2001. *** ***) Decree of the State Council no. 151/1975 has been repealed by LAW no. 500 500 of 11 July 2002 published in MONITORUL OFFICIAL no. 597 597 of 13 August 2002. ---------------- NOTE: See also EMERGENCY ORDINANCE no. 64 64 of 28 June 2003 published in MONITORUL OFFICIAL no. 464 464 of 29 June 2003. This law was adopted by the Chamber of Deputies at the meeting of September 14, 1998, in compliance with the provisions of 74 74 para. (1) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT, ANDREI IOAN CHILIMAN This law was adopted by the Senate at the meeting of September 14, 1998, in compliance with the provisions of art 74 74 para. (1) of the Romanian Constitution. p. SENATE PRESIDENT, MIRCEA IONESCU-QUINTUS + Annex 1 LIST taxes, duties and other income of local budgets ------------------------------------------------------------------------------- No. Name crt. revenue ------------------------------------------------------------------------------- CHAPTER I Own revenue which is provided for in the own budgets of the counties A. CURRENT INCOME 1. Income tax 2. Other direct taxes 2.1. Other receipts from direct taxes 3. Aquarius from Net Profit 4. Aquarius from public institutions 4.1. Other income from public institutions 5. Various income 5.1. Revenue from fines and penalties imposed, according to the provisions legal, own bodies 5.2. Refunds of funds from local budget financing of the years Previous 5.3. Revenue from concessions and rentals 5.4. Proceeds from the valorisation of confiscated property, 5.5. Proceeds from other sources 6. Revenue from the collection of works for the control of pests and diseases in the vegetal sector-public plant protection services. B. CAPITAL INCOME 6. Income from the use of goods 6.1. Revenue from the use of public institutions ' assets C. SPECIAL PURPOSE INCOME 7. Special charges 8. Income from the sale of private domain goods 9. Income from the public roads fund 10. Income from the intervention fund 11. Income from the housing fund 12. Income from the depreciation of fixed assets 13. Donations and sponsorships 14. Amounts granted by legal and natural persons in order to participate in financing of public interest actions CHAPTER II Own income that is provided in the own budgets of the communes, cities, municipalities, sectors of Bucharest and Bucharest A. CURRENT INCOME 1. Income tax 2. Taxes and taxes from the population 2.1. Tax on the income of self-employed, craftsmen and the other independent individuals and family associations 2.2. Tax on buildings and land from individuals 2.3. Taxes on means of transport owned by individuals 2.4. Income tax from real estate rentals 2.5. Other taxes and fees from the population 3. Fee for the use of state-owned land, used in other purposes other than for agriculture or forestry 4. Tax on buildings and land from legal entities 5. Taxes on means of transport owned by legal entities 6. Other direct taxes 6.1. Other receipts from direct taxes 7. Taxation on shows 8. Other indirect taxes 8.1. Other receipts from indirect taxes 9. Aquarius from Net Profit 10. Aquarius from public institutions 10.1. Fees for the examination of drivers of motor vehicles driving licences and other income relating to movement on public roads 10.2. Repealed. 10.3. Revenue of artificial seeding points 10.4. Incomes of veterinary constituencies 10.5. Payments from the availability of public institutions and the self-funded activities 10.6. Other income from public institutions 11. Various income 11.1. Revenue from the recovery of costs, imputations and compensation 11.2. Revenue from fines and penalties imposed, according to the provisions legal, own bodies 11.3. Refunds of funds from local budget financing of the years Previous 11.4. Revenue from concessions and rentals 11.5. Proceeds from the valorisation of confiscated property, 11.6. Proceeds from other sources B. CAPITAL INCOME 12. Income from the use of goods 12.1. Revenue from the use of public institutions ' assets 12.2. Revenue from the sale of houses built from State C. SPECIAL PURPOSE INCOME 13. Special charges 14. Income from the sale of private domain goods 15. Income from the public roads fund 16. Income from the intervention fund 17. Income from the housing fund 18. Income from the depreciation of fixed assets 19. Donations and sponsorships 20. Amounts granted by legal and natural persons in order to participate in financing of public interest actions ------------------------------------------------------------------------------- NOTE: The list of local taxes, fees and other income of local budgets can be updated as a result of the improvement of tax legislation, as well as annual budget laws, consistent with programs to increase financial autonomy. administrative-territorial units and decentralization of public services. ------------- Section 10.2 of Chapter II of Annex no. 1 1 has been repealed by EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 published in MONITORUL OFFICIAL no. 232 232 of 25 May 1999. EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 was republished in the OFFICIAL GAZETTE no. 742 742 of 11 October 2002. Item 6 of the letter A of Chapter I of Annex no. 1 1 was introduced by EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 published in MONITORUL OFFICIAL no. 232 232 of 25 May 1999. EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 was republished in the OFFICIAL GAZETTE no. 742 742 of 11 October 2002. + Annex 2 LIST expenditure to be provided for in local budgets ------------------------------------------------------------------------------- No. Name crt. revenue ------------------------------------------------------------------------------- CHAPTER I Expenditure to be provided for in the own budgets of the counties 1. Executive authorities 2. Culture and Religion 2.1. County libraries 2.2. Museums 2.3. Professional performance and concert institutions 2.4. Popular art schools 2.5. Centres of conservation and valorisation of tradition and creation Popular 2.6. Religious cults 2.7. Other institutions and actions on culture 3. Social assistance, aid and allowances 3.1. Specialized public service for child protection 3.2. Other actions concerning social assistance, aid and allowances 4. Services, public development and housing 4.1. Water supply, wastewater treatment plants, collectors, pumping stations 4.2. Networks, plants and thermal points 4.3. Sewage 4.4. Hydrotechnical facilities of local interest, in the building 4.5. Other actions concerning services, public development and housing 5. Transport 5.1. Roads and bridges 5.2. Airports 5.3. Other expenditure on transport 6. Other actions 6.1. Military Command 6.2. Civil protection 6.3. Other expenditure 7. Fund to guarantee external loans, interest and related commissions 7 ^ 1 Fund to guarantee external loans, interest and commissions related to contracted/guaranteed by local public administration authorities 8. Interest payments and commissions 9. Rations of loans 9.1. Repayment of loans for investments 9.2. Repayment of loans granted from the state treasury 10. Reserve Funds 10.1. Budgetary reserve fund at the disposal of county councils 11. Special purpose expenses 11.1. Public services financed by special taxes 11.2. Expenditure from the public roads fund 11.3. Expenditure from the intervention fund 11.4. Expenditure from the housing fund 11.5. Expenditure on the depreciation of fixed assets 11.6. Expenses from donations 11.7. Expenditure of amounts granted by legal and natural persons in to participate in the financing of public interest actions 12 12. Agriculture *) 12.1. Pest and disease control in the plant sector-public plant protection services. *) The expenses that are financed from the own budgets of the counties and the city of Bucharest are as follows: personnel expenses, materials and services and capital expenditures. CHAPTER II Expenses that are provided in the own budgets of the communes, cities, municipalities, sectors of Bucharest and Bucharest 1. Executive authorities 2. Education *) 2.1. Pre-school education 2.2. Primary and secondary education 2.3. High school education 2.4. Vocational education 2.5. Post-secondary education 2.6. Interned, dormitories and canteens for students (allowances from budgets local in completing their own income) 3. Health 3.1. Creams 3.2. Other health institutions and actions 4. Culture and Religion 4.1. Public libraries 4.2. Museums 4.3. Professional institutions of performances and concerts 4.4. Houses of Culture 4.5. Cultural hostels 4.6. Religious cults 4.7. Other institutions and actions on culture 5. Social assistance, aid and allowances 5.1. Retirement homes and retirement homes 5.2. Hospital-homes for disabled and chronically ill 5.3. Social aid canteens 5.4. Dormitories for infirm and dormitory children-workshop 5.5. Social assistance 5.6. Specialized public service for child protection 5.7. Birth allowances 5.8. Other actions concerning social assistance, aid and allowances 6. Services, public development and housing 6.1. Streets 6.2. Public lighting 6.3. Sanitation 6.4. Public gardens, parks, green areas, sports and leisure grounds 6.5. Housing 6.6. Water supply, wastewater treatment plants, collectors, pumping stations 6.7. Networks, plants and thermal points 6.8. Sewage 6.9. Hydrotechnical facilities of local interest, in the building 6.10. Introduction of natural gas in localities 6.11. Other actions concerning services, public development and housing 7. Transport 7.1. Roads and bridges 7.2. Public transport 7.3. Other transport expenditure. 8. Agriculture * *) 8.1. Repealed. 8.2. Artificial seeding points 8.3. Veterinary constituencies (excluding epizootic diseases) 9. Other economic actions 9.1. Preventing and combating floods and glaciers 9.2. Other expenditure on economic activities 10. Other actions 10.1. Military Command 10.2. Civil protection 10.3. Other expenditure 11. Fund to guarantee external loans, interest and related commissions 11 11 ^ 1 " Fund to guarantee external loans, interest and commissions related to contracted/guaranteed by local public administration authorities 12. Interest payments and commissions 13. Rations of loans 13.1. Repayment of loans for investments 13.2. Repayment of loans granted from the state treasury 14. Reserve Funds 14.1. Budgetary reserve fund at the disposal of local councils 15. Special purpose expenses 15.1. Public services financed by special taxes 15.2. Expenditure from the public roads fund 15.3. Expenditure from the intervention fund 15.4. Expenditure from the housing fund 15.5. Expenditure on the depreciation of fixed assets 15.6. Expenses from donations 15.7. Expenditure of amounts granted by legal and natural persons in to participate in the financing of public interest actions ------------------------------------------------------------------------------- *) From the local budgets the maintenance and household expenses, current repairs and capital repairs, some investment expenses, approved according to the law, for connection to the natural gas network, water supply or other works on the improvement of heating installations at units of state pre-university education, as well as other expenses provided by the legal provisions. ** **) The expenses that are financed from local budgets are as follows: personnel expenses, materials and services and capital expenditures. NOTE: The list of expenses that are provided in local budgets can be updated as a result of the improvement of the legislation, as well as through the annual budgetary laws, in line with the programs to increase the financial autonomy of the administrative-territorial and decentralization of public services. -------------- Section 8.1 of Chapter II of Annex no. 2 2 has been repealed by EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 published in MONITORUL OFFICIAL no. 232 232 of 25 May 1999. EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 was republished in the OFFICIAL GAZETTE no. 742 742 of 11 October 2002. Item 12 of Chapter I of Annex no. 2 2 was introduced by EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 published in MONITORUL OFFICIAL no. 232 232 of 25 May 1999. EMERGENCY ORDINANCE no. 71 71 of 24 May 1999 was republished in the OFFICIAL GAZETTE no. 742 742 of 11 October 2002. Item 7 ^ 1 of Chapter I of Annex no. 2 2 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. Item 11 ^ 1 of Chapter II of Annex no. 2 2 was introduced by EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 606 of 25 November 2000. ---------------- NOTE: EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 published in MONITORUL OFFICIAL no. 606 of November 25, 2000 was suspended for. a 90-day period of EMERGENCY ORDINANCE no. 295 295 of 30 December 2000 published in MONITORUL OFFICIAL no. 707 707 of 30 December 2000. EMERGENCY ORDINANCE no. 219 219 of 24 November 2000 has been approved by LAW no. 337 337 of 6 July 2001 published in MONITORUL OFFICIAL no. 378 378 of 11 July 2001. ----------