How much money does Bucharest receive and how is the money divided between the Capital City Hall and the Sectors. Nicușor Dan's referendum, partially implemented

For this year, the City Hall of the Capital will receive, in addition to 2025, about 1.5 billion lei, according to the State Budget Law adopted in Parliament on Friday.

Another novelty in the new budget is that, this year, the money from the income tax is no longer shared by the Government, but by the General Council, which means that partly the referendum of Nicușor Dan has been applied. It is about 9.5 billion lei, which will be divided between the Capital City Hall and the Sectors. Ilfovul receives about 90 million lei from the money of Bucharest residents.

The approximately 11 billion lei, which are estimated to be collected from the income tax at the level of Bucharest, are divided as follows, according to an amendment introduced in the adopted draft law:

• 14% go directly to the Capital City Hall – about 1.5 billion lei;
• 1% to Ilfov – approximately 90 million lei;
• 85% will be divided by the General Council, between the Capital City Hall and the District Town Halls. From here, separately, Sector 4 led by Daniel Băluță receives directly 150 million lei for the passage from the intersection of Ion Iriceanu street with Turnu Măgurele street, the floor at Unirii and “other infrastructure works”.

A first in the new budget

It is the first time, in over 20 years, that the 85% is shared by the General Council. Until now, the division was made by the Government and the Parliament, through the state budget law.

Thus, at least partially, one of the points from Nicușor Dan's referendum, that the money be distributed at the local level, has been implemented. But this was done by the State Budget Law, so it is only valid for this year.

Next year, things could change. For the division to be applied annually, it is necessary that the results of Nicușor Dan's referendum be implemented in the Public Finance Law.

What exactly does the State Budget Law provide

“From the estimated income tax, a share of 1% is allocated to Ilfov county (…) to finance the expenses of the development section, and a share of 14% is allocated to the local budget of the municipality of Bucharest (…) which is used as a priority to finance general public services at the level of the municipality of Bucharest, to ensure the financing of infrastructure projects, to ensure the co-financing of projects from reimbursable and/or non-reimbursable funds and to support programs of local development”, the approved budget states.

The remaining 85% are divided by the General Council between the Capital City Hall and the Sectors.

“The amount corresponding to a share of 85% of the estimated income tax is communicated to the municipality of Bucharest by the General Regional Directorate of Public Finances Bucharest, within 3 working days from the date of entry into force of this law. Within 10 working days from the communication, the estimated amount, related to the share of 85%, communicated is distributed by decision of the General Council of the Municipality of Bucharest to the local budget of the municipality of Bucharest and the local budgets of the sectors of the city of Bucharest”, the approved project also states.

How the money is divided between the Capital City Hall and the Sectors

For the distribution of the sums corresponding to the 85% quota, the General Council of the Municipality of Bucharest has the obligation, within 2 working days from the date of entry into force of the law, to request in writing from all sectors the submission of applications for the distribution of sums, and the sectors have the obligation to communicate the proposals within 2 working days of the request, the adopted draft also states.

According to sources from the local administration, consulted by HotNews, the negotiation is that the Sectors do not have a lower budget than last year.

What the general mayor says

“Am I satisfied? Only partially. Because, even if we received a better allocation this year, compared to the years 2024 and 2025, we are still in the movie of a bazaar budget, where it is negotiated within the Coalition, year after year how much the PMB will get, how much the town halls of the sectors will get. Not according to the real responsibilities and funding needs of public services, but according to the political muscles. This is NOT normal! We need a predictable formula, given by the Public Finances law (this does not change from year to year), and let's not stay in this harmful uncertainty”, wrote the general mayor, Ciprian Ciucu, on the Facebook page.

Is it good that the budget will be distributed by the General Council? Ciucu says that “we will see”.

“Until this moment we do not have a clear, negotiated and established majority, but we have conjunctural majorities. We discussed at the Coalition what percentages belong to PMB and what percentages belong to the Sectors. If we all (PNL, PSD, USR) stick to what we decided at the Coalition, then this year will have passed well and I will have peace of mind to deal with the projects and the promised reforms.

If we don't keep our word (I don't break my word), it will be difficult, maybe there will be a period of uncertainty,” Ciucu wrote.

How is the budget of the Bucharest City Halls made

The budget of the Bucharest City Halls is composed of income tax, part of the broken down VAT quotas mainly for education and social services, local taxes and fees collected directly by the mayors and the own revenues of these institutions.

In 2024 and 2025, due to the Train Ordinance, only 65% ​​of the income tax went to the Municipality of Bucharest, underfunding complained by the Nicușor Dan administration.