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Financing Local Government in Theory and Practice: Short Lesson from Slovenia

Author

Listed:
  • Zan Oplotnik

    (University of Maribor, Faculty of Economics and Business (EPF) and Faculty of Law, Maribor, Slovenia)

  • Bostjan Brezovnik

    (University of Maribor, Faculty of Economics and Business (EPF) and Faculty of Law, Maribor, Slovenia)

Abstract

With decentralisation, decision makers are closer to the results of their decisions. As such, local government is a feature of all EU states, despite many differences between them. An optimal model of local financing is hard to implement, due to high level of political infection, but main principles need to be followed. The model of local financing should lean on suitable vertical allocation of resources, adequate proportion of local revenues coming from own sources and relatively fair equalisation system. However, fiscal autonomy and local discretion over the form of municipal service delivery should not be neglected. This article studies the case of Slovenia.

Suggested Citation

  • Zan Oplotnik & Bostjan Brezovnik, 2004. "Financing Local Government in Theory and Practice: Short Lesson from Slovenia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 7(2), pages 75-93, November.
    • Handle: RePEc:zag:zirebs:v:7:y:2004:i:2:p:75-93
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    Cited by:

    1. Turk, Tomaž & Trkman, Peter, 2012. "Bass model estimates for broadband diffusion in European countries," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 85-96.

    More about this item

    Keywords

    fiscal decentralisation; local financing; fiscal federalism; public finance;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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