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FINANCIAL DEPENDENCE AND BALANCE – NEW CHALLENGES OF THE PUBLIC SERVICE DECENTRALIZATION

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Abstract

The paper intends to analyse a model of decentralization specific to Continental Europe, which shows that a transfer of responsibility to the local authorities has not always been appropriately followed by a transfer of resource, the consequence being the appearance of budgetary imbalances at the level of local communities. In this situation, the local communities are forced to identify the funding source and, therefore, they have used the most rapid instruments provided by the law and the financial institutions – the borrowed sources. As long as the borrowed funding sources have been used to the restoration of the public infrastructure and, therefore, to the public investments, the solutions identified by the public manager are not to be blamed, the problem being the use of borrowed sources in order to cover certain consumerism needs which illegitimately charges, in our opinion, the public cost, the obligation to finance the maturity rates including the interest falling back on the future generations.

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