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EN
In the article the scientific and methodical approach of a mechanism to ensure financial independence territory on the basis of decentralization. It is emphasized that financial capacity areas should be assessed in solving problems of tactical and strategic. In determining the financial independence of the territory proposed to use financial potential is calculated by taking into account the impact of the shadow economy on financial flows, thus avoiding the manipulation of money allocated for development of the area and to identify regions donor and recipient regions. The article draws attention to the fact that the mechanism for ensuring financial autonomy territory on the basis of decentralization should be based on achieving a reasonable compromise interest of the State and Territories (population and businesses). That financial autonomy area is not an absolute concept, it is relative, is meant to increase the level of autonomy to certain maximum possible limits that do not conflict with the interests of the state and budgets at all levels.
EN
The paper is devoted to research of specific relationships between central and local budgets. Considering the frontier status of local budgets it is proposed methodological approach to the allocation of local budgets by line sources of revenues and expenditure items. It is thoroughly analyzed the structure of revenues and expenditures of local budgets, as well as the source and specificity of their formation. Considering existing inequalities it is proposed to optimize the mechanisms of state and local budgets formation, mainly focusing on increasing of their transparency.
EN
The paper sets out to examine the local-government system in Hungary, starting from an atypical pattern of indebtedness among LGOs in recent years. One symptom of the atypical indebtedness is atypical local government. It argues that this as another factor behind the break-up of the Hungarian local-government model and also a cause for further changes. Having presented the main features of this Hungarian local-government model, the author draws attention to the financial structure, before analysing the effect of the indebtedness on the sustainability of the budget. The paper looks at the possibility of handling the problem in the short term, within the frames of the existing model, but points out that the indebtedness is a further obstacle to paradigmatic reform. Finally it advances two possible scenarios for a systemic solution to modernization.
EN
The paper assesses spatial competition in diesel taxation among European governments. By adding an extension to the standard model, it is shown that asymmetric competition - small countries undercutting large - implies that small countries respond less strongly to tax changes by their neighbours than large countries do. An estimate is then made of the fiscal reaction functions for national governments, employing a first-difference regression model with a weighting scheme constructed from road-traffic density data at national borders. Data from 16 countries (EU-15 minus Greece plus Norway and Switzerland) between 1978 and 2005 provides evidence that European governments set their diesel tax interdependently, and moreover, that small European countries tend to react less strongly to changes in their competitors' tax rate than large countries do.
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