Review article
Self-taxation as a source of funding for local units - The Croatian and Macedonian experience
Tereza Rogić Lugarić
; Faculty of law, University of Zagreb, Zagreb, Croatia
Aleksandra Maksimovska Veljanovski
; Iustinianus Primus Faculty of law, Ss. Cyril and Methodius University, Skopje, Macedonia
Abstract
One of the most significant trends in local finances of the day is fiscal decentralisation, a process which is very much present in both Croatia and Macedonia. In the context of the aims of decentralisation, and with regard to frequently limited local financial capacities, sources of funding for local public services and infrastructure attract the attention of both theory and practice. Along these lines, this paper takes a look at self-taxation, a specific manner of financing local public goods with a long tradition in both countries, often referred to as an indigenous instrument of collecting funds for local expenditure. Besides decentralisation, the authors also refer to other trends which may have an impact on the broader use of the said model of financing; urbanisation and a notable shift towards increased involvement of citizens in certain phases of the budgetary cycle. The second part of the paper is dedicated to the concept and fundamental features of self-taxation, the current position of this funding instrument in the local finances of Croatia and Macedonia, and the aspects of its practical application. Finally, the authors propose certain recommendations for future application of self-taxation by referring to the theoretical and practical experience relating to this financial model.
Keywords
decentralisation; financial autonomy; citizen participation; self-taxation
Hrčak ID:
66873
URI
Publication date:
20.3.2011.
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