engleski

The equalisation grant scheme in Croatia

It is natural that the revenues capacities and expenditure costs and/or needs of LGUs differ. These differences result in horizontal imbalances. Meaning that some LGUs cannot cover their necessary budgetary expenditure with their revenues, or that LGUs' abilities to provide public goods and services to their communities differ. Since central governments aim to provide equal amounts of public goods for all their citizens, to overcome horizontal imbalances they usually use intergovernmental transfers (revenue sharing and equalization grants). Concerning solving of horizontal imbalances in Croatia the focus of this paper is on the assessment of the equalization grant scheme in Croatia. Thus we shall analyse how much money is given through the grants to those LGUs that really need them. Furthermore, we shall consider how the equalization grant scheme could be improved, so as best to serve the purpose of improving the people’ s well-being.

grants ; Republic of Croatia ; horizontal fiscal equalization

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