USING SPLINE FUNCTIONS FOR THE SUBSTANTIATION OF TAX POLICIES BY LOCAL AUTHORITIES

The paper aims to approach innovative financial instruments for the management of public resources. In the category of these innovative tools have been included polynomial spline functions used for budgetary sizing in the substantiating of fiscal and budgetary policies. In order to use polynomial spline functions there have been made a number of steps consisted in the establishment of nodes, the calculation of specific coefficients corresponding to the spline functions, development and determination of errors of approximation. Also in this paper was done extrapolation of series of property tax data using polynomial spline functions of order I. For spline impelementation were taken two series of data, one reffering to property tax as a resultative variable and the second one reffering to building tax, resulting a correlation indicator R=0,95. Moreover the calculation of spline functions are easy to solve and due to small errors of approximation have a great power of predictibility, much better than using ordinary least squares method. In order to realise the research there have been used as methods of research several steps, namely observation, series of data construction and processing the data with spline functions. The data construction is a daily series gathered from the budget account, reffering to building tax and property tax. The added value of this paper is given by the possibility of avoiding deficits by using spline functions as innovative instruments in the publlic finance, the original contribution is made by the average of splines resulted from the series of data. The research results lead to conclusion that the polynomial spline functions are recommended to form the elaboration of fiscal and budgetary policies, due to relatively small errors obtained in the extrapolation of economic processes and phenomena. Future research directions are taking in consideration to study the polynomial spline functions of second-order, third-order, Hermite spline and cubic splines of class C2 .fiscal policy, budget deficits, spline functions, budget justification, debt crisis

CHAOS OR TURBULENCE ON THE VOLATILITY OF PUBLIC REVENUES

In an intuitive attempt to define financial distress in the public sector, it can be represented by the turbulence over the normal rhythm of indicators’ evolution in the public revenues, due to the influence of exogenous factors coming from the real economy, the behavior of taxpayers as well as to other influencing factors. This way of defining financial distress makes it possible to measuring its composing elements, such as: the turbulence and the influence of exogenous factors. The application of financial distress tests for the public budgetary indicators and the notification of its existence can be of real use for the central and local governments, taxation policy.local government revenues, public taxation, financial distress

SUBSTANTIATION OF THE PUBLIC DEBT SUSTAINABILITY USING KALMAN FILTER

Global economic conditions have pushed many countries into the delicate situation of contracting foreign loans, leading overnight at alarming volumes of public debt. The need for control and relevant analysis for the sustainability of a country\'s public debt has led us to use the Kalman filter in predicting future values of the key indicators of public debt. The development of a mathematical model of analysis for public services and the budget deficit was necessary to objectively assess the level of the public debt sustainability.Knowing future values of the public debt or the future evolutions of the revenues for the operational budget, offers the posibility of a better handling of the operational expenditures and finally a better balance for the public budget deficit.Using the mathematical mechanism of Kalman filters implemented in Matlab programming language, we generated the estimated future values of the proposed model proposed and key indicators, the results confirming the fears of a low public debt sustainability for Romania.We predicted the future values for the debt service, the public external debt and the operational public revenues,expenditures and deficit, and compared them, to obtain an image of the future evolution and position of the sustainability of the public debt. The work in this paper is an innovative one for the public science sector, and the results obtained are promising for future researches. The values estimated by the Kalman filter are an orientation for the future public policies, and indicate a rather stable but negative evolution for the public debt service. The sustainability of the public debt depends on the decisions taken for the correction of the estimated values, in changing the negative evolution of the budgetary indicators into a positive one.Taking all this into consideration we will conclude that the mathematical mecanism of the Kalman filters offers valuable informations for Government and future research should be oriented to develop it's returned results.Kalman filter, debt, sustainability, deficit, prediction

INVESTIGATION OF THE COSTS AND BENEFITS OF ROMANIAN INTEGRATION IN EUROPEAN UNION

The aim of this study is to investigate the costs and benefits of Romanian integration in European Union. Starting from this ideea, the paper presents the political and economic factors that conduct to the integration even that the economic growth is undeEuropean Union, integration costs, integration benefits

THE CORPORATE GOVERNANCE OF PUBLIC ENTITIES IN ROMANIA

The paper aims to examine the application of principles of corporate governance fortransparency and efficiency of decision and control at the level of local public entities. We intend toargue the importance of these principles of governance in the public entities to determineresponsibility and management decision-making bodies in achieving the objectives in terms ofreliability of financial reporting, effectiveness and efficiency of operations, compliance withapplicable legislation.corporate governance, public efficiency, public governance.

INVESTIGATION OF THE COSTS AND BENEFITS OF ROMANIAN INTEGRATION IN EUROPEAN UNION

The aim of this study is to investigate the costs and benefits of Romanian integration in European Union. Starting from this ideea, the paper presents the political and economic factors that conduct to the integration even that the economic growth is und

Stochastic Fuzzy Algorithms for Impairment of Assets Management

The present paper aims to analyze the impairment of tangible assets with the help of artificial intelligence. Stochastic fuzzy numbers have been introduced with a dual purpose: on one hand to estimate the cash flows generated by tangible assets exploitation and, on the other hand, to ensure the value ranges stratifications that define these cash flows. Estimation of cash flows using stochastic fuzzy numbers was based on cash flows generated by tangible assets in previous periods of operation. Also, based on the Lagrange multipliers, were introduced: the objective function of minimizing the standard deviations from the recorded value of the cash flows generated by the tangible assets, as well as the constraints caused by the impairment of tangible assets identification according to which the cash flows values must be equal to the annual value of the invested capital. Within the determination of the impairment value and stratification of the value ranges determined by the cash flows using stochastic fuzzy numbers, the impairment of assets risk was identified. Information provided by impairment of assets but also the impairment risks, is the basis of the decision-making measures taken to mitigate the impact of accumulated impairment losses on company’s financial performance

The Public Finances, the Utility of the Taxpayer and the Public Services – towards a New Connecting Model?

Public finances from everywhere have followed along the centuries, as it was natural, some periods when they had to accommodate to the needs resulted from the economic and social life. Their mission was not at all a simple one. To conceive the taxes and rates (dues) system, to ensure a performing and an efficient budgetary process, to finance some categories of public expenses, to ensure a fiscal decentralization which would not lead to severe interferences within the public field are only a few of the problems of major importance that they had to deal with. And also the challenges that have come upon public finances are not to be neglected. We may bring to mind here the opposed interests of the taxpayer, interested in obtaining a higher level of goods and public services and of the public authorities who, trying to satisfy the needs of taxpayers, have obtained almost all the time a quite high level of taxes and rates (dues). The purpose of this paper is, though, the setting up of these apparently opposed interests in an equation. We have also tried to” measure” the dependence degree of the utility felt by the taxpayer, as a consequence of the growth with one unit of the quantity of public services performed by the authorities

Measuring the Degree of Local Administration Action in Economic Development

The attentive diagnosis of the local economic basis, the deep understanding of the obstacles that confront the economic growth and the investments, the elaboration and the implementation of certain strategies to facilitate the investments are the means by which the local authorities can assure the future of the local community which voted them. The present paper proposes to measure the effectiveness and efficacity of their activity by lying the basis of the methodology of calculating the degree the local authorities imply themselves in the local economic development and its impact upon the financial mana¬gement performance of a certain town. Only a management that sustains the local economic development can lead to the permanent growth of the economic basis, which generates permanent development

Measuring the Degree of Local Administration Action in Economic Development

The attentive diagnosis of the local economic basis, the deep understanding of the obstacles that confront the economic growth and the investments, the elaboration and the implementation of certain strategies to facilitate the investments are the means by which the local authorities can assure the future of the local community which voted them. The present paper proposes to measure the effectiveness and efficacity of their activity by lying the basis of the methodology of calculating the degree the local authorities imply themselves in the local economic development and its impact upon the financial mana¬gement performance of a certain town. Only a management that sustains the local economic development can lead to the permanent growth of the economic basis, which generates permanent development