Almost a decade after the outbreak of the global economical and financial crisis, the
economies of different countries are developing in a certain new normal state, which is
characterized by the lower rate of economical growth and by higher unemployment rate.
The trends show that the more competitive economies are able to adapt faster to
different types of impacts. The main factor of increased competitive ability of national
economy is well organized and effective public sector.
The main purpose of this master thesis is analysis of key aspects of public sector
operation in Slovenia and Austria. The thesis deals with the detailed comparison of
Slovenia and Austria in the view of the public sector, public finance rates, public
expenditures by function with the emphasis on expenses for education, the rate of
centralization and decentralization and comparison of the competitive ability of Slovenian
and Austrian economy.
The main methods used in this master thesis are descriptive, comparative and statistical
methods and also method of synthesis and deduction.
The analysis shows, that the main difference between Slovenia and Austria is the
structure of public administration. Slovenia faces excessive budget deficit (which is slowly
decreasing) and public debt, while in Austria dominates constant budget deficit and
excessive public debt. Both countries spend the most for social security. According to the
results of the analysis, Slovenia is a country with a high rate of centralization, while the
rate of centralization is lower in Austria. Slovenia is more competitive in higher education,
while on the other hand Austria is more competitive in corporate strategies. The biggest
barriers in better competitiveness of Austria and Slovenia are tax rates and legislation,
and also ineffective government administration. The results of the analysis have the
potential to aid in further analysis and studies.
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