THEORETICAL FOUNDATIONS REGARDING THE IMPORTANCE, NECESSITY AND USAGE OF MULTIANNUAL BUDGETS IN ROMANIA
The material is intended to be an easy to read one, structured in a way to be a theoreticalframework concerning the importance, necessity and usage of multi-annual budgets inRomania. The article puts particular emphasis on explaining the terminology specific to thedomain regarding multi-annual budge...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2011-01-01
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| Series: | Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice |
| Subjects: | |
| Online Access: | http://www.uvvg.ro/studiaeconomia/images/2001/v1/29.%20THEORETICAL%20FOUNDATIONS%20REGARDING%20THE%20IMPORTANCE,%20NECESSITY%20AND%20USAGE%20OF%20MULTI-ANNUAL%20BUDGETS%20IN%20ROMANIA.pdf |
| Summary: | The material is intended to be an easy to read one, structured in a way to be a theoreticalframework concerning the importance, necessity and usage of multi-annual budgets inRomania. The article puts particular emphasis on explaining the terminology specific to thedomain regarding multi-annual budgeting, on principles and less on methodology, whichonce learned and applied, can lead to the improvement of the financing mechanismsthrough multi-annual budgets. Without constituting a monograph of the legislation in force,the article refers also to the legal regulation that will be applied. In Romania budgets arevoted on annually, and this short time horizon has often been criticized that it wouldadversely affect the efficient management of expenditures. Decisions on resource allocationare taken without an overall vision, ignoring the implications of past decisions or set on atime horizon longer than one year. Most European countries have implemented in one formor another, multi-annual budgets, to counter the disadvantages of annual budgets. For themost part, universities that will apply multi-annual budgets will build a direct relationshiprelated to expectations regarding the evolution of the activity, not with the objectives set bythe university. In the case in which the expectations regarding the evolution of theuniversity are not expressed in clearly stated objectives, and are not employed indeveloping budgets, the answers received by performing an efficiency analysis of theuniversity, from the verification analysis of the projected and budgeted amounts, are verysimple and do not give added value to the budget process. |
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| ISSN: | 1584-2339 2285-3065 |