Fiscal Risks of Operations of Enterprises Owned by Large Cities

Marko Primorac () and Kazimir Poljak ()
Additional contact information
Marko Primorac: University of Zagreb, Faculty of Economics and Business

Chapter 3 in Financije teorija i suvremena pitanja = Finance - theory and contemporary issues, 2018, vol. 1, pp 41-74 from Josip Juraj Strossmayer University of Osijek, Faculty of Economics

Abstract: The paper analyses the financial position of local government units and local government owned enterprises in the Republic of Croatia in order to perceive the main features of their interaction and the financial position of the local sector in the wider context. In response to the growing capital investment needs of local government units, there occurs intensive interaction between local units and local government owned enterprises. This can cause financial instability and materialisation of fiscal risks. Although there are budget constraints, they are not as restrictive as it may seem since the practice shows how the regulation can be played out. Therefore, overall indebtedness of the consolidated local government sector is presented with reference to the revenues from subsidies and grants as forms of support and the granting of guarantees and borrowing consents as potential liabilities. These are all important factors that, if omitted, can result with false impressions and creation of inadequate base for making decisions on the use of financial resources.

Keywords: fiscal risks; local government units; local government owned enterprises; borrowing; subsidies; guarantees (search for similar items in EconPapers)
JEL-codes: G30 H63 H70 (search for similar items in EconPapers)
Date: 2018
ISBN: 978-953-253-150-3
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.efos.unios.hr/repec/osi/chaptr/PDF/chapter18-03.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osi:chaptr:18-03

Access Statistics for this chapter

More chapters in Occasional Publications from Josip Juraj Strossmayer University of Osijek, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Hrvoje Serdarusic, PhD ( this e-mail address is bad, please contact ).