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Performance Measurement at the Sub-national Government Level in Croatia

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  • Dubravka Jurlina Alibegovic

    ()
    (The Institute of Economics, Zagreb)

  • Suncana Slijepcevic

    ()
    (The Institute of Economics, Zagreb)

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    Abstract

    This paper analyzes the role of performance measurement at the sub-national government level in Croatia as one of the crucial factors that lead to the improvement of implementation of local and regional policies. The analysis is based on the Public Expenditure and Financial Accountability Public Financial Management (PEFA PFM) Performance Measurement Framework. Three performance indicators are used for measuring the credibility of the sub-national budget. The first performance indicator measures the differences between aggregate expenditure outturns and the original approved budget at the sub-national government level in Croatia. The second performance indicator is used to examine the difference between the composition of expenditure outturn and the original approved budget at the sub-national government level in Croatia. The third indicator measures the deviation of aggregate revenue outturn from the original approved budget at the sub-national government level in Croatia. A significant divergence of budgetary outturns from the original approved budget, both on the revenue and expenditure side of the budget, confirms the hypothesis about low credibility of the budget at the sub-national level in Croatia. The paper also analyzes the impact of expenditure structure on the performance of the sub-national government level in Croatia. The results presented in this paper identify the main policies which the sub-national government uses to encourage local and regional development in Croatia. However, the results show that the budget does not incorporate any aspects of strategic planning, which is necessary to achieve local and regional development. The substantial difference between planned and realized budgetary expenditures is a key obstacle to faster local and regional development.

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    Bibliographic Info

    Paper provided by The Institute of Economics, Zagreb in its series Working Papers with number 1002.

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    Length: 36 pages
    Date of creation: Sep 2010
    Date of revision:
    Publication status: Published in CPB document No 154
    Handle: RePEc:iez:wpaper:1002

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    Keywords: local and regional development; local and regional policy; performance measurement; Croatia;

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