Principal changes in the structure of municipal revenues in the period of 2000–2017 with an emphasis on fiscal decentralization in Slovakia
DOI:
https://doi.org/10.61357/sehs.v9i1.57Keywords:
fiscal decentralization, municipal budget, municipal revenues, tax revenues, non-tax revenues, inter-governmental transfersAbstract
The implementation of fiscal decentralization in Slovakia in 2005 should have improved the financing of lower levels of government in terms of fortifying their financial autonomy, bringing the local authorities closer to citizens, etc. Indeed, the immediate period after the implementation brought excellent results, maybe thanks to the persistence of the economic expansion. However, the optimistic prospects of municipal and regional authorities were destroyed by the arrival of the financial crisis. Certain alleviation came in the period of the economic recovery. In this paper the structure of municipal revenues in the period of 2000–2017 is analysed with an emphasis on a system change presented by fiscal decentralization. An increasing trend in the municipal total revenues per capita can be observed in the monitored period. Simultaneously, as expected, results show certain principal changes in their structure which are linked to the public finance reform. Additionally, they were later affected by the financial crisis. What is important is the increase of the municipal tax revenues after 2005 with disturbance of the trend during the financial crisis. The eligible increase of received grants in the period of 2000–2004 was followed by a slight decrease after 2005, but worsening of the economic conditions in the period of 2009–2013 again required its dramatic increase. Municipal non-tax revenues seem to be resistant to economic development in Slovakia.
References
Act No. 369/1990 Coll., on Municipal Establishment.
Act No. 302/2001 Coll., on Administration of Superior Territorial Units.
Act No. 416/2001 Coll., on Transfer of Some Competences from State Administration to Municipalities and Higher Territorial Units.
Act No. 523/2004 Coll., on Budget Rules of the Public Administration and on Amendments and Supplements to Certain Laws.
Act No. 564/2004 Coll., on Budget Determination of Income Tax Yields to Regional Self-government and on Amendments and Supplements to Certain Laws.
Act No. 582/2004 Coll., on Local Taxes and Local Charges for Municipal Waste and Small Rubble.
Act No. 583/2004 Coll., on Budget Rules of the Regional Self-government and on Amendments and Supplements to Certain Laws
ARISTOVNIK, A. (2012). Fiscal Decentralization in Eastern Europe: Trends and Selected Issues. Transylvanian Review of Administrative Sciences, 37: pp. 5–22.
BASKARAN, T., BLESSE, S., BRENDER, A. et al. 2015. Revenue Decentralization, Central Oversight and the Political Budget Cycle: Evidence from Israel. ZEW Discussion Paper No. 15-046, Mannheim.
BODMAN, P., FORD, K., GOLE, T. & HODGE, A. (2009). What Drives Fiscal Decentralization? Working Paper, Macroeconomic Research Group. [online] [cit. 2018-09-29]. Available at www.uq.edu.au/economics/mrg/3009.pdf
BOJAR, A. 2015. Intra-governmental bargaining and political budget cycles in the European Union. European Union Politics 16(1): pp. 90-115. https://doi.org/10.1177/1465116514547954
Datacentrum. (various years). Rekapitulácia príjmov a výdavkov obcí a rozpočtových organizácií v ich pôsobnosti podľa ekonomického členenia rozpočtovej klasifikácie.
Decree of the Government No. 668/2004 Coll., on Distribution of Income Tax Yields to the Regional Self-government.
EBEL, R.D. & YILMAZ, S. (2002). Concept of Fiscal Decentralization at Worldwide Overview, World Bank Institute, [online] [cit. 2018-09-29]. Available at http://www-wds.worldbank.org/external
EYRAUD, L., LUSINYAN, L. (2013). Vertical Fiscal Imbalances and Fiscal Performance in Advanced Economies. Journal of Monetary Economics, 60 (5): pp. 571–87. https://doi.org/10.1016/j.jmoneco.2013.04.012
Eurostat (2018). Government Finance Statistics. Available at https://ec.europa.eu/eurostat
JÍLEK, M. (2008). Fiskální decentralizace, teorie a empirie. Praha: ASPI Wolters Kluwer. ISBN 978-80-7357-355-3.
KÖPPL-TURYNA, K., KULA, G., BALMAS, A. et al. 2015. The effects of fiscal autonomy on the size of public sector and the strength of political budget cycles in local expenditure. MPRA Paper No. 66877, Munich Personal RePEc Archive, Munich.
MALIČKÁ, L. (2016). Searching for fiscal decentralization constraining effect on local expenditure: case of Visegrad countries. Scientific Papers of the University of Pardubice 23(38): pp. 68–80.
MALIČKÁ, L. (2017a). Review of municipal own revenue in the SR. In: CEFE2017. Košice: TU, ISBN 978-80-553-2906-2, pp. 499–507.
MALIČKÁ, L. (2017b). Determinanty zadĺženosti miestnych samospráv Slovenskej republiky. Politická ekonomie (65)3: pp. 301-315. DOI: https://doi.org/10.18267/j.polek.1145
MORVAY, K. (Ed.) 2014. Hospodársky vývoj Slovenska v roku 2013 a výhľad do roku 2015. Bratislava: Ekonomický ústav SAV. ISBN 978-80-7144-224-0.
NIŽŇANSKÝ, V., CIBÁKOVÁ, V. & HAMALOVÁ, M. (2014). Tretia etapa decentralizácie verejnej správy na Slovensku. Bratislava: Wolters Kluwer. ISBN 978-80-8168-138-7.
OATES, W. E. (1972). Fiscal Federalism. New York: Harcourt Brace Jovanovich.
OATES, W.E. (1999). An essay on fiscal federalism. Journal of Economic Literature, 37: pp. 1120–1149.
PEKOVÁ, J. (2011). Finance územní samosprávy teorie a praxe v ČR. 1st edition. Praha: Wolters Kluwer. ISBN 978-80-7357-614-1.
PROVAZNÍKOVÁ, R. (2015). Financování měst, obcí a regionů: teorie a praxe.3rd edition. Praha: Grada. ISBN 978-80-247-5608-0.
SHARMA, CH., K. (2012). Beyond Gaps and Imbalances: Restructuring the Debate on Intergovernmental Fiscal Relations. Public Administration – an International Quarterly 90(1), pp. 99–128. DOI: 10.1111/j.1467-9299.2011.01947.x
Downloads
Published
How to Cite
Issue
Section
License
For all articles published in SEHS, copyright is retained by the authors. Articles are licensed under an open access Creative Commons CC BY 4.0 license, meaning that anyone may download and read the paper for free.
