Economy and Public Finance

- Constitution of Romania

TITLE IV - Economy and public finance

ARTICLE 135 - Economy

(1) Romania's economy is a free market economy, based on free enterprise and competition.

(2) The State must secure: a) a free trade, protection of fair competition, provision of a favourableframework in order to stimulate and capitalize every factor of production; b) protection of national interests in economic, financial and currencyactivity; c) stimulation of national scientific and technological research, arts, and protection of copyright; d) exploitation of natural resources, in conformity with nationalinterests; e) environmental protection and recovery, as well as preservation of the ecological balance; f) creation of all necessary conditions so as to increase the quality of life;g) implementation of regional development policies in compliance with the objectives of the European Union.

ARTICLE 136 - Property

(1) Property is public or private.

(2) Public property is guaranteed and protected by the law, and belongs to the State or to territorial-administrative units.

(3) The mineral resources of public interest, the air, the waters with energy potential that can be used for national interests, the beaches, the territorial sea, the natural resources of the economic zone and the continental shelf, as well as other possessions established by the organic law, shall be public property exclusively.

(4) Public property is inalienable. Under the terms of the organic law, the public property can be managed by autonomous régies or public institutions, or can be granted or leased; also, it can be transferred for free usage to public utility institutions.

(5) Private property is inviolable, in accordance with the organic law.

ARTICLE 137 - Financial system

(1) Formation, administration, use and control of the financial resources of the State, of territorial-administrative units and public institutions shall be regulated by law.

(2) The national currency is the Leu, with its subdivision, the Ban. Under the circumstances of Romania's accession to the European Union, the circulation and replacement of the national currency by that of the European Union may be acknowledged by means of an organic law.

ARTICLE 138 - National public budget

(1) The national public budget shall comprise the State budget, the State social security budget and the local budgets of communes, towns and counties.

(2) The Government shall annually draft the State budget and the State social security budget, which shall be submitted separately to Parliament for approval.

(3) If the Law on the State budget and the Law on the State social security budget fail to be passed by at least three days before the expiry of the budgetary year, the previous year's State budget and the State social security budget shall continue to be applied until the adoption of the new budgets.

(4) Local budgets shall be drafted, approved and executed in accordance with the law.

(5) No budget expenditure shall be approved unless its financing source has been established.

ARTICLE 139 - Taxes, duties, and other contributions

(1) Taxes, duties and any other revenue of the State budget and State social security budget shall be established only by law.

(2) Local taxes and duties shall be established by the local or county councils, within the limits and under the terms of the law.

(3) The sums representing contributions to the establishment of funds shall only be used, according to the law, for their actual purpose.

ARTICLE 140 - Court of Audit

(1) The Court of Audit shall exercise control over the formation, administration, and use of the financial resources of the State and public sector. Under the terms of the organic law, the disputes resulting from the activity of the Court of Audit shall be solved by specialized courts of law.

(2) The Court of Audit shall annually report to Parliament on the accounts of the national public budget administration in the expired budgetary year, including cases of mismanagement.

(3) At the request of the Chamber of Deputies or the Senate, the Court of Audit shall check the management of public resources, and report on its findings.

(4) Audit advisers shall be appointed by the Parliament for a term of office of 9 years, which cannot be extended or renewed. Members of the Court of Audit shall be independent in exercising their term of office and irremovable throughout its duration. They shall be subject to the incompatibilities the law stipulates for judges.

(5) The Court of Audit shall be renewed with one third of the audit advisers appointed by the Parliament, every 3 years, under the terms stipulated by the organic law of the Court.

(6) The Parliament shall be entitled to revoke the members of the Court of Audit, in the instances and under the terms stipulated by the law.

ARTICLE 141 - The Economic and Social Council The Economic and Social Council shall be an advisory body of the Parliament and Government, in the specialized fields stated by the organic law for its establishment, organization, and functioning.