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December 1, 2022

IMF delegation discusses public administration reform at Development Ministry

Deputy PM and Regional Development Minister Sevil Shhaideh discussed on Wednesday about the public administration reform with a delegation of the International Monetary Fund (IMF) headed by Reza Baqir, the IMF mission chief for Romania.

“The central point in the administration reform is the financial capacity of the local public administration. The year 2018 will bring a new vision, from this point of view: our goal is that the localities and counties be capable of building a budget to cover the local necessary of public services, and those services be better from year to year. At the same time with establishing some minimum quality standards, the financial cover will translate into public services of a better quality,” Sevil Shhaideh said, according to a release of the Ministry of Regional Development, Public Administration and European Funds (MDRAPFE).

The release points out that the discussions were also aimed at the stage of priority projects of the ministry and the possible future collaboration possibilities.

The governance priorities in the public administration reform area are aimed at adopting the administrative code, the updating of the Statute of public workers, the General Strategy for Decentralisaiton – now in the approval gathering stage in view to its being approved by the Government – , developing, updating the quality and cost standards for a number of nine decentralised public services areas and establishing new priorities of funding for the local public administration.

One of the Government’s measures refers to revising the funding system of the local administration, in the context in which ensuring the necessary funds is the most important step to decentralisation and local autonomy.

“The objective is that of offering all mayors in Romania, regardless of their political colour, sufficient resources to decently manage the community’s businesses. Starting 1 January 2018, for each administrative-territorial unit there will be supplied a minimum of financial resources worth 750 lei per capita and the income tax will become a source of the local budgets, to consolidate this independence,” Sevil Shhaideh pointed out.

In respect to the National Programme for Local Development, in the project-filling stage, the Deputy PM underscored that it is estimated that the value of the funding requests will exceed the budget allotted to the programme.

In this situation, the projects will go through a selection stage, according to the prioritization criteria applicable to the programme, the release points out.

During the discussions with the IMF delegation, it was agreed on some future technical working meetings, in the discussed areas, in which the minister could benefit from the IMF expertise.

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