Economic Review, Vol. 66 No. 6, 2015.
Preliminary communication
IMPLEMENTATION OF THE INTERTEMPORAL BUDGET CONSTRAINTS - THE CASE OF SUSTAINABILITY OF THE PUBLIC DEBT OF THE CITY OF ZAGREB
Davor Bernardić
Boris Vujčić
Abstract
The purpose of this paper is to evaluate the mid-term sustainability of City of Zagreb’s public debt and determine the budget capacity for financing of development projects. The results of sustainability analysis, based on the framework of intertemporal budget constraint, shows that City of Zagreb’s public debt will probably increase in the future. Such expected developments suggest that there is a need for an improvement in the budget planning process with the main goal of achievement of balanced budget or primary surplus which was recognized as the main determinant of public debt stabilization, which is directly in the domain of the policy makers’ activities.
Keywords
local budget; public debt sustainability; City of Zagreb
Hrčak ID:
150390
URI
Publication date:
29.12.2015.
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