COMPENDIUM CULTURAL POLICIES AND TRENDS IN EUROPE
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Romania/ 5.1 General legislation  

5.1.3 Allocation of public funds

The main financing bodies in the field of culture in Romania are MoCNH (which grants various subsidies to its own institutions), the Administration of the National Cultural Fund (through grant schemes and other support schemes), the National Cinema Council (through state aid schemes) and the local authorities (through specific subsidies and grant schemes).

The level of subsidies granted by MoCNH for its own subordinated entities, are decided by MoCNH's College on the basis of the evaluation of the programmes implemented during the previous year and of the proposed managerial programme for the specified period and according to the yearly budgetary laws.

All the state aids and grants follow a classical open procedure, based on a transparent competition of projects and a peer review evaluation. The regulatory acts on this issue are:

  • GO no. 51/1998 on the Improvement of the Financing System for Cultural Projects and Programmes modified and completed by GO no. 2/2008, approved by Law no. 199/2008;
  • GO no. 10/2005 on the regulation of some Financial Measures modified by GO no. 41/2005 approved by Law no. 97/2006 and by GO no. 2/2008;
  • GO no. 42/2000 on the Improvement of the Financing of some Sectorial Development Programmes initiated by MoCNH modified by GO no. 18/2006; and
  • GO no. 39/2005 on Cinema modified by GO no. 97/2006, Law no. 303/2008 and GO no. 77/2009.

Law No. 500 of 11 July 2002, on Public Finance, CHAPTER IV, deals with the financing of public institutions:

Article 62 - The financing of public institutions

(1)  The financing of the current and capital expenditure of public institutions shall be ensured as follows:

  • funded completely from the state budget, the state social insurance budget, or the budgets of the special funds, depending on each case;
  • funded from their own revenues and from subsidies granted from the state budget, the state social insurance budget, the budgets of the special funds, depending on each case; and
  • fully self-funded.

(2)  The public institutions that are fully financed from the state budget, the state social insurance budget, or the budgets of the special funds shall transfer the total revenues raised to the budget from which they are financed.

Article 63 - Material goods and cash funds received from the public institutions:

  • (1) the public institutions may use material goods and cash funds received from donations and sponsorship to carry out their work as long as they respect the legal provisions;
  • (2) In the case of public institutions fully financed from the state budget, the cash funds received from donations and sponsorship (in accordance with the terms of paragraph 1) shall be paid in directly to the budget from which they are financed. The budgetary credits of the respective budget shall then be increased and shall be used according to the provisions of Article 49 (1), respecting the destination established by the provider.
  • (3) within 10 days from the end of each month, the main loan managers shall transmit monthly, to the Ministry of Public Finance, the statement regarding the amounts transferred to the budget and used according to paragraph (2), in order to introduce the appropriate modifications in the volume and structure of the state budget, the state social insurance budget, or the budgets of the special funds;
  • (4) With the cash funds from donations received according to the terms of paragraph (1), in the case of public institutions financed according to the provisions of Article 62 (1) b) and c), their income and expenditure budgets shall be increased. These institutions are obliged to submit, in the annex to the quarterly and annual budgetary accounts, a statement of the amounts received and used on these terms and by which the income and expenditure budget was increased; and
  • (5) The material goods received under the conditions mentioned in paragraph (1) by the public institutions are registered in their accounts.

Article 64 - The financing of certain public institutions

The financing of certain public institutions may be ensured from both the state and the local budgets, only when the categories of expenditure which are financed by each budget are established by the annual budgetary law or by special laws.

Article 65 - The revenues of the public institutions

  • public institutions' own incomes, financed according to Article 62 (1) b) and c), shall be cashed, administered, used and recorded into accounts according to the legal provisions.
  • public institutions' own incomes, financed according to Article 62 (1) b) and c), shall be obtained from rent, organisation of cultural and sports events, artistic competitions, publications, editorial services, studies, projects, products from their own activities, service provisions etc.

Article 63 – On the financing of public institutions:

the financing of current expenditure and of capital expenses of public institutions shall be ensured as follows:

  • fully from the local budget;
  • from their own income and subsidies granted from the local budget; and
  • fully from their own income.

The public institutions fully financed from the local budget shall pay the income achieved into this budget.

Article 64 - The income of public institutions:

  • the income of public institutions, financed under the conditions of Article 63 (1) b) and c), shall be collected, administered, utilised and published according to the legal provisions; and
  • the income of the public institutions' budgets, financed according to Article 63 (1) b) and c), shall be raised from the provision of services, rent, cultural and sports events, artistic competitions, publications, publishing services, studies, projects, capitalisation on products from their own or related activities etc.

Culture, religion and actions regarding sports and youth activity:

  • public county libraries;
  • museums;
  • theatres and professional institutions for shows and concerts;
  • popular art schools;
  • conservation and tradition and popular creation development centres;
  • religious groups;
  • sports activities; and
  • other institutions and actions regarding culture, religion and sports and youth activities.

Chapter published: 23-08-2012

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