۱٫ Introduction

۲٫ Performance budgeting: Theoretical background and literature overview

۳٫ Case study: the capacity of the Romanian state to reduce fiscal arrearages, as part of better funding processes for public institutions

۴٫ Conclusions

References

The actions taken in order to make public administration more efficient within the last few years have been concentrated on optimizing the internal processes within public institutions. In doing so, an emphasis was placed upon the method in which public financial resources are utilized. The accumulated experience in theory as well as in practice has shown however, that optimizing the processes of planning financial resources is just as important. As a result, the emphasis can be placed on the efficiency of budgetary processes. To evaluate the budgetary performance a series of financial-economic indicators can be used in order to quantify the method in which financial resources are used, as well as producing a plan for their application. The use of statistical analysis and the evaluation of official data which is offered by public institutions, on the basis of which financial-economic indicators are calculated manages to distinguish this paper from others. The conclusions of this study focuses on the expressivity and usefulness of these indicators.

Introduction

The sustainable development of the public administration depends, to a certain extent, on the level of predictability of the environment and of its actions, as is directly influenced by the importance of the financial resources in public entities, as well as by the procedures through which such resources are identified, collected and rationally assigned (Miller, 2012). The participation and involvement of citizens as partners of the public administration in the process concerning the use of public money is an extremely important issue, due to several reasons (Dumitrescu – Peculea et al., 2014). First of all, the functional connection between the citizen and the state, collaborating so as to identify the financing areas and priorities, is ensured. Second of all, the citizen’s perception concerning the decisional transparency of the public administration, in terms of the financial resources, consolidates the feelings of trust, belonging, and social responsibility, which can lead to a higher level of tax and charge collection, and to a higher level of the citizen’s acceptance of new development directions (Mortelmans and Dumitrescu, 2013). Finally, the public administration’s ability to satisfy the constantly more complex needs of the citizen contributes to the sustainable development of the entire system (Romanian Government, 2008; Mortelmans & Dumitrescu – Peculea, 2015).