Economic crisis of 2007-2011 has resulted in the decrease in GDP in USA, Japan and all EU member countries except Poland. It has also deteriorated the general government finance, caused sharp decline of revenue and increase in operating expenditures, ratios of debt to GDP and net borrowing to GDP. We investigate, in the EU member states, an impact of the GDP decline on local government finance: local revenue (taxes on income, wealth, and production, current transfers), operating expenditures, investment, operating surplus, net borrowing and indebtedness. We present comparisons of select countries, of the EU15 and the “new member states” over 2007-2011. The analysis bases on the Eurostat data and the Source OECD database.
The association of local and regional self-government is examined in regard to the decentralization of state administration. This study extrapolated data from 36 Organisation for Economic Cooperation and Development (OECD) countries and analyzed whether decentralization of the state assists in economic growth and development. Administrative decentralization is explored through defining a precedence from the literature. A systematic literature review was conducted and macroeconomic OECD data using nominal gross domestic product was analyzed for the period of 1995–2018. The results confirmed that decentralization does not positively correlate with the level of tax independence of local government and, in eff ect, is not an advantage. Territorial administration is highlighted throughout the paper as a key factor behind tax autonomy in relation to fiscal decentralization levels.
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.