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

Zan Oplotnik and Bostjan Brezovnik
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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

Zagreb International Review of Economics and Business, 2004, vol. 7, issue 2, 75-93

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.

Keywords: fiscal decentralisation; local financing; fiscal federalism; public finance (search for similar items in EconPapers)
JEL-codes: E62 H2 (search for similar items in EconPapers)
Date: 2004
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