Investments are very important for society as whole, because they are raising the standard of life, they enable the growth and modernisation of municipality so that it is becoming more attractive for her citizens and tourists. Investments are subdivided into investment revenues and investment transfers. We define investment revenues as payments, intended to gain material and non material basic funds, such as investment maintenance, reconstructions of buildings and for the most important of material basic funds. Investment transfers are transferred money non returned funds. They are meant for payment investment revenues receipts of founds. The intention was to discover whether the share of funds meant for investments in smaller municipalities according to area and the number of citizens is smaller than the shares in larger municipalities. My question was also whether the larger part of investments in smaller municipalities is financed by taking out loans in comparison to larger municipalities.
I used quantitative methods of research for analysis of data. I gained the data on several internet pages, such as AJPES, SURS, internet pages of municipalities of Posavje region, Ministry of Finance and others. Among themselves I compared six municipalities from the region of Posavje. Afterward I analysed the data especially focused on analysis of investment revenues and investment transfers.
I discovered that the statement, that in smaller municipalities according to area and the number of citizens the share of funds meant for investments is smaller than the share of larger municipalities, is only partly true. It is only partly because two municipalities are deviated from what we expected. I also discovered that larger municipalities are more indebted than smaller municipalities, because smaller municipalities have bigger shares of budgetary expenditure and because they use money from transfer revenue for the investments.
With the degree I wanted to find out, what is the influence of the size of municipality on society. Is it better that the municipality is larger and for that in enable to have enough professional staff and other resources for successful development? Or in the contrast - is it better if the municipalities are smaller and in that way closer to the citizens. It is also easier for them to decide about important matters together. From the view of investments, we can come to the conclusion, that larger municipalities have greater opportunities to compete for the founds from the state budget and the EU budget, greater opportunities for borrowing loans due to the extension of available funds, they
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decide for the bigger projects easily, meanwhile smaller municipalities use most of the funds for sanitation, roads, etc.
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