TRENDS IN THE PRESENTATION OF BUDGET INFORMATION IN ROMANIAN FINANCIAL STATEMENTS
Margareta Făgădar (Ghişa), Claudiu – Florin Deac
Ph.Ds, “1st of December 1918” University of Alba Iulia, Romania, Faculty of Economic Sciences, Doctoral School in Accounting
Abstract: The country’s general economic development links public finances with the state, which needs financing, as they are a major concern for specialists in the field. The budget has objectively established itself as an appropriate and indispensable support for the establishment and rational management of public financial activities. A budget provides an overview of resources and how they are redistributed to achieve organizational objectives. Although the need for a system of programming and highlighting revenue and expenditure to support the implementation of specific activities and the dimensioning of their effectiveness is recognized, it is considered that this need is more pressing for public activities. As a financial management tool for strategic budgetary planning, best practices in the field of planning, and public financial management are strengthened, the public budget ends each year with the approval of the general account of its implementation. Romania is actively involved in the modernization of public sector financial management, thus it has managed to implement a well-functioning it service for reporting the financial statements of public institutions, which facilitates the collection of information needed for EU-level reporting. The implementation of this system at national level results in the discipline of the budget institutions and in full transparency as regards the budget used and how this budget has been spent. The aim of this work is to present, through an exploratory approach, the temptations in the presentation of budget information in the Romanian financial statements. Planning a realistic budget ensures optimal allocation of state resources, the achievement of political priorities, and involves only an extension of the time horizon in the preparation of the public financial plans, but also an economic focus and efficiency in the management of public resources. Responsible financial and budgetary management generates efficiency, effectiveness and performance in the design and implementation of balanced budgets for the functioning and development of the administrative capacity of public administration structures.
Keywords: budget, revenue, expenditure, effectiveness, financial management.
