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What does Craiova’s budget look like this year. The Mayor of Craiova, Lia Olguţa Vasilescu, presented the project of the municipality’s revenue and expenditure budget for 2024, as it will be submitted for approval in today’s meeting of the City Council. Craiova’s budget, of 352 million euros, is 11 million euros lower than last year. The investment budget increases by 110% from the previous zero.
The general consolidated budget of the municipality of Craiova for the year 2024 is in the amount of 1.76 billion lei, i.e. 352 million euros, i.e. 11 million euros lower than the one in 2023, as a result of the reduction of the amounts allocated by the Government of Romania to local authorities from the tax on income.
Craiova’s budget for 2024 proposes total revenues of 1,193,591.00 lei, of which own revenues of 286,368,000 lei. The rates broken down from the income tax are 407,509,000 lei, and the amounts broken down from VAT – 137,785,000 lei. Of this money, 101,543,000 lei are for the financing of decentralized expenses: for educational units the amount of 32,915,000 lei, for the operation of homes for the elderly – 7,384,000 lei, for the payment of the rights of people with severe disabilities and personal assistants – 48,528 .000 lei, the financing of the gratuity granted to students for urban transport – 6,900,000 lei. Also in the revenue chapter there are subsidies in the amount of 21,642,000 lei.
About the city budget for 2024, the mayor of Craiova said:
“The consolidated general budget of the Municipality of Craiova for 2024 amounts to 1.76 billion lei, i.e. 352 million euros. The operating section is 697 million lei (139 million euros) and will be used for the operation and maintenance of public institutions of local subordination, for the maintenance of the public domain, street lighting, the granting of subsidies and aid to vulnerable people. The development section is 525 million lei (105 million euros) and will be used to finance new and further investment works, equipment and capital repairs, projects with non-reimbursable external financing. We make it clear that the budget for the year 2024 shows a slight decrease as the amounts distributed to the Municipality of Craiova from the income tax decreased compared to the year 2023 by 58.5 million lei, i.e. 11 million euros, as a result of the distribution of money by the Government of Romania” , said Lia Olguța Vasilescu.
It was cut off from culture and green spaces
Due to the decrease in allocations from the Ministry of Finance, Craiova City Hall reduced the funds for culture and green spaces, but the subsidy for thermal energy delivered to the population from the local budget was kept. The city hall subsidizes 26.7 million lei.
“The budget for the year 2024 shows a slight decrease as the amounts allocated to the Municipality of Craiova from the income tax decreased compared to the year 2023 by 58.5 million lei, i.e. 11 million euros, as a result of the distribution of money by the Government of Romania. Even under these conditions, we increased the allocations for the segments considered priority: health, which receives 28 million euros, for education, where we allocate 50 million euros, road maintenance, where 18 million euros go, social assistance, etc. Unfortunately, the fact that the allocations from the Ministry of Finance are smaller has put us in a position to reduce the funds for culture and green areas. The subsidy for the thermal energy delivered to the population from the local budget remained at the same level as in 2023, but we no longer received additional amounts from the state budget”, said Lia Olga Vasilescu.
Easier with money for IntenCity
In terms of investments, most of the money comes from European funds. However, the local administration was forced to cut expenses for events. “There is no more money coming from the state budget and we preferred investments instead of events”, said the mayor of Craiova. One such event is IntenCity.
“This year we allocated 7 million lei for the IntenCity Festival, compared to 21 million lei last year. We had nothing to do, I hope our sponsors will help us”, said the mayor.
In the development section, the funds are worth 528,698,000 lei, of which 240,374,000 lei come largely from allocations through the PNRR, plus subsidies from the state budget necessary to support the development of projects with European funds. The sum of 5,176,000 lei comes through PNI “Anghel Saligny”. 76,632,000 lei are forecast from the EU this year, on account of payments made, and 23,281,000 lei on account of payments made and pre-financing related to the 2014-2020 financial framework. Instead, in 2024, the operating section is 664,893,000 lei.
The budget also includes funds for the rehabilitation and modernization of streets, sidewalks and the construction of passages, funds for transportation, sanitation, investments with recreation areas and a new sewerage master plan.
