Romanian Govt Transfers EUR90M To Local Auth, Most Run By Ruling Party

The money comes from VAT collections and aims to fund "eligible" investment applications, according to a Government decision.

Such decisions have been approved by the Government before - in 2010 and in 2009 - when VAT collections were transferred to a number of local authorities, mostly run by PDL, to finance current and capital expenses.

In 2009, the Social Democratic Party-PDL allotted 662 million lei (EUR1=RON4.1843) to town halls run by the two parties, for infrastructure development and sports center construction projects. In 2008, the Liberal Party government distributed funds from VAT collections to units administered by the Liberal Party and Social Democratic Party.

A study published in June last year by the Institute for Public Policy (IPP) said more than 70% of the mayor who received money from the Government's budget reserve fund in 2009 were PDL members.

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