Review article
Some questions of financing the local self-government units-comparative aspects
Hrvoje Arbutina
; Faculty of Law, University of Zagreb, Zagreb, Croatia
Abstract
The author in this text explores various models offinancing the local self-government units, starting from the criterion oftheir impact on a degree of decentraliza- tion and of their fiscal abundance. Introductory, the arguments are given in favor and against thè integration of multiple units of self-government. The integration increases the fiscal capacity; on the other hand, even smaller local units may mutualicombine in relation to specific tasks whereas such a connection does not have a permanent character,
Inter-budgetary transfers have been for a longer period oftime the most significant source of local units’ revenue, but they do not moke a convenient means to promote decentralization. Local taxes make in that sense a better means, but their potential has approached the limits in many countries, in particular those undergoing the process of transition.
The payments by beneficiaries as well as the public debt as the means of local financing of mainly the business character have been so far of only a secondary signif canee. While the payments by beneficiaries might be expected to remain so, the local units debt, as some American experiences demonstrate, might potentially be a significant source of revenue, in particular for the purposes of capital Investments in the local units.
Keywords
local self-government; units financing; decentralization
Hrčak ID:
197755
URI
Publication date:
7.6.2000.
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