Rationalization of the local budget economy: a comparative analysis of the legislative basis in Poland and Romania in the concepts of positive law and natural law

Abstract

Motivation: The contrast between positive law and natural law regarding the rationalization of public budget management is strongest at the local government level. Local government finances are governed by the budget law enacted by parliament. However, it is at the subnational level of government where the natural right to self-determination and making rational decisions in the interest of local communities is most apparent.Aim: This article evaluates and compares the scope and instruments of Polish and Romanian budget laws that enable the rationalization of managing subnational budgets from the perspective of positive law and natural law. The article is based on research using qualitative methods (a literature review and a critical examination of financial legislation in Poland and Romania) and a descriptive comparative analysis.Results: The research confirms the main thesis of the article that the pillar of budget management rationalization in Polish and Romanian local governments is a symbiosis of positive law with natural law, the underpinning and enhancement of which should be formal legislation.