FINANCIAL AUTONOMY OF LOCAL GOVERNMENTS IN THE SLOVAK REPUBLIC: A PANEL DATA INVESTIGATION

• Authors: Maličká Lenka
• Languages of publication: EN

Abstracts

EN

Autonomy of local governments consists also in the financial autonomy. In the SR, the municipal financial autonomy is importantly influenced by dominant position of shared tax in the municipal tax revenue. When considering only own revenues (own tax and nontax), the financial autonomy of municipalities is low. In this paper the financial autonomy of municipalities in the SR is analysed in the period 2005 – 2019. Inequalities in financial autonomy are analysed at the base of the Gini index. Higher inequalities are observed in case of the exclusion of shared tax, what confirms that the shared tax serves as a channel of horizontal fiscal equalization. Employing the panel regression, determinants of financial autonomy are analysed. The negative relationship is observed in case of the population growth, use of returnable financial resources, financial crisis and also the portion of shared tax on municipal tax revenue, when considering the financial autonomy based on own resources.

Keywords

EN

FINANCIAL AUTONOMY; FISCAL DECENTRALIZATION; LOCAL GOVERNMENT; LOCAL TAX; SHARED TAX; PANEL DATA; SLOVAK REPUBLIC

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2021
• Volume: 69
• Issue: 7
• Pages: 669 – 686

Contributors

author

Maličká Lenka

• Technical University of Košice, Faculty of Economics, Němcovej 32, 040 01 Košice, Slovak Republic

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2021.07.01