Original scientific paper
Fiscal Decentralisation And Fiscal Imbalance In Croatia And The European Union Countries
Anto Bajo
Marko Primorac
Abstract
The aim of the paper is to show the degree of fiscal decentralisation and fiscal imbalance in Croatia compared to the other EU member states, and to test the hypothesis of Croatia’s relative fiscal dentralisation and vertical fiscal imbalance. The degree of fiscal decentralisation is estimated by using the coefficients of decentralisation of revenue, expenditure, tax revenue and expenditure for employees, and a share of tax revenue in total local governments’ revenue. Fiscal imbalance is determined by calculating the Hunter’s coefficients. The results indicate the relative decentralisation of Croatia in comparison to the other member
states in terms of total revenue and expenditure as well as in terms of expenditure related to compensation of employees who have been transferred from the central to local government. Regarding tax decentralisation, Croatia lags slightly behind the EU average. Vertical fiscal imbalance in Croatia is lower than in the other EU member states.
Keywords
fiscal decentralisation; fiscal imbalance; Hunter’s coefficient; Croatia; EU
Hrčak ID:
129898
URI
Publication date:
29.6.2014.
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