Hrcak
Portal of scientific journals of Croatia
Financial Theory and Practice, Vol.34 No.1 March 2010.
Original scientific paper
Evaluating the current equalization grant to counties in Croatia
Mihaela Bronić
; Institute of Public FInance, Zagre
Fulltext: pdf (219 KB),
English,
Pages 25 - 52
,
Abstracts
This paper assesses the design of the 2005 equalization grant to the counties in Croatia. Since no allocation formula for this grant has ever been publicly disclosed, this paper provides an analysis and explanation of the aforesaid formula. At the time of its introduction, the objective of the equalization grant was to mitigate differences in fiscal capacities among counties, so our work is focused on fiscal capacities and on whether the new formal allocation rule set by the central government follows the predetermined objective in the grant allocation. This article proves our hypothesis that the new equalization grant does not adequately mitigate the differences in fiscal capacities across Croatian counties.
Keywords
counties; fiscal capacity; equalization grant; Croatia
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