The percentage allocated to local budgets from income tax cashed from the state will increase from 63 to 82 percent. In addition, the debt limit for the public local administration authorities will be increased starting January 1, from 20 to 30 percent of their income. The changes are included in the Local Public Finance Law. Local and county councils will decide to give or take loans if the majority of councilors vote for this measure. Until now, such a decision has required a two-thirds approval of councilors.

In Bucharest, the amounts received from the collection of income tax (82 percent) will be distributed to the City Hall budget (47.5 percent compared to 36.5 percent now), local budgets of sectors (23.5 percent) while 11 percent will go to an account created to balance the budgets of sectors and the city. As for counties, cities and villages will receive 47 percent (11 percent more than they currently receive) of the income tax funds, while the general county budget will receive 13 percent, three percentage points over the current level. Sums allocated for local budgets from some of the state budget revenues will be granted based mostly on their financial capacity which is figured by taking into account the per capita income tax. The county's surface is another criterion.

Cities and local councils will be considered as having a financial crisis if they have not paid debts older than three months, which exceed 15 percent of their annual budget. They will become insolvent if they had not paid debts older than four months that exceed 50 percent of their budget.

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