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Finances autonomy of units of local self-government in Republic of Croatia

The model of funding of units of local self- government in Republic of Croatia has been established so as to ensure uniform connection and internal linking of all its constituent parts, where conflicts between structural levels of authorities are being resolved. It has been established on the basis of contemporary principle of fiscal decentralization, and can be compared with model of funding in developed countries, when compared with countries in transition having fiscal decision making system under the level achieved in Republic Croatia, which means that it has not been built on principles of democracy and decentralization of power. But, regardless to the established model of funding, problem of public sector funding can`t be resolved by any model whatsoever, being question of economic strength, which implies increase of domestic GDP.

Units of local self-government ; model of funding ; fiscal decentralization, public sector requirements ; vertical supplemental funding

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