Manifestations of Subnational Fiscal Federalism in Lithuanian Local Self-governments

Dalia Rudytė (), Solveiga Skunčikienė () and Inga Maksvytienė ()
Additional contact information
Dalia Rudytė: University of Applied Sciences
Solveiga Skunčikienė: Vilnius University Šiauliai Academy
Inga Maksvytienė: Vytautas Magnus University

A chapter in Eurasian Business and Economics Perspectives, 2021, pp 87-106 from Springer

Abstract: Abstract The manifestations of fiscal federalism are analyzed at the subnational level in order to enhance the fiscal capability of municipalities. However, the municipalities usually lack the incentive to compete when providing packages of public services to the public as the revenue of municipalities is restricted by national level laws and remains highly dependent on government grants. The aim of this article is to determine the manifestations of the theory of fiscal federalism when assessing the fiscal capability of municipalities. The analysis of Lithuanian municipalities’ data for the five-year period reveals the municipal level situation. Research methods include the analysis of legislation and statistical data, content analysis, and cluster analysis. It has been found that there is no clear agreement at the interinstitutional level (from the highest to municipal level). Fiscal competition among the municipalities leads to a more efficient distribution of funds which can also have a positive impact on regional economic growth in the long term. Insufficient data at self-government level is a precondition for further separation among municipalities as rich municipalities keep getting richer while economically weak municipalities keep getting poorer.

Keywords: Fiscal federalism; Municipal function; Subnational level (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:eurchp:978-3-030-71869-5_6

Ordering information: This item can be ordered from
http://www.springer.com/9783030718695

DOI: 10.1007/978-3-030-71869-5_6

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().