FISCAL DECENTRALIZATION IN CROATIA - REFORM PROCESS OR POLITICAL RHETORIC

Halid Konjhodzic and Meri Suman Tolic ()
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Halid Konjhodzic: University of Dubrovnik
Meri Suman Tolic: University of Dubrovnik

Economic Thought and Practice, 2009, vol. 18, issue 2, 233-258

Abstract: The paper discusses the issues involved in decentralization process in Croatia. Although it has become the most favoured reform policy priority among the Croatian politicians of all options, the values of indicators of fiscal decentralization confirm the fact that it has been achieved at a very law degree. The paper outlines characteristics of Croatian system of fiscal decentralization and measures that are necessary for successful implementation and realization of the benefits associated with fiscal decentralization. The conclusions in this paper are based on the analysis of the division of functional responsibilities and revenues across levels of government and on calculation of widely used measures for the estimation of the degree of decentralization. The paper concludes with a re-emphasis on the importance of execution of decentralization process in a way that it ensures financial autonomy of local units so that they have sufficient revenues needed for the realization of delegated functions.

Keywords: decentralization; expenditure assignment; revenue assignment; grants; equalization system; indicators of fiscal decentralization (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2009
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