In the Republic of Slovenia, the municipalities are the authorities that are the closest to people. In order to fulfil the tasks prescribed by law and to exercise their responsibilities, they have to distribute financial resources appropriately. Financial autonomy of municipalities in Slovenia is quite low as they face debt, additional funding to financial compensation coming from national budget, and the issue of the adequacy regarding the calculated volume of eligible expenditure for the municipality.
The research object of this Master’s thesis is to analyse issues of municipal funding and to determine how does state funding function in Croatia. The second object is to examine statutory lump-sum, a payment that, under the legislation currently in force, belongs to 212 Slovenian municipalities. For every municipality, there is an exactly the same formula for calculating the expenditure, not taking into consideration the land area nor the number of inhabitants. The third goal is therefore to analyse the ratio and the coefficients in the aforementioned formula.
We used descriptive method to present duties and obligations of the municipalities, and the municipal financial management system. With compilation method, we summarised opinions or previous studies about the adequacy of funding in Slovenian municipalities and determining lump-sum amounts. We carried out the survey about the factual situation of the adequacy of funding by interviewing functionaries from different municipalities, and sought views and opinions about the variables or the coefficients in the formula for eligible expenditure of municipalities and about the law amending Financing of Municipalities Act.
This Master’s thesis contains concrete proposals for legislative amendments concerning municipal funding. The proposals are based on empirical research that was executed among the functionaries from different municipalities. According to the results of the research, they believe that legislative amendment regarding municipal funding is most needed.
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