Fiscal Decentralization in Croatia
The problems in Croatia’s fiscal decentralization system have long been recognized. The fragmented territorial-administrative structure, fiscal decentralization efforts with insufficient fiscal autonomy, inconsistent public service standards, unbalanced sources of revenue, and doubts about the introduction of real estate taxes are just some of the concerns. However, there is often no consensus on the possible ways to address them. Compounding the problem is the fact that the recent and still ongoing tax reform, due to its tax relief element, has created the need to compensate subnational governments for the losses of revenues. The COVID-19 pandemic has increased the significance of these issues as the lockdown measures have had a strong negative impact on the existing revenue sources, such as personal income taxes (PITs), of many local and regional government units (LRGUs). At the same time, it may be that the current crisis has created the preconditions and opportunity needed for the government to finally implement reforms in support of fiscal decentralization and more effective financing of subnational governments, reforms that have long been postponed due to political reasons and a lack of popular support. These reforms include addressing the fragmentation of local governments, providing a clearer and more appropriate assignment of functional responsibilities, improving the fiscal equalization system by including the fiscal expenditure needs component, and introducing a working property tax. All of these ideas have long been debated, but there are many reasons to believe that the time is right for at least some of them to be implemented. This report provides a comprehensive overview of the major challenges and options for reform in several critical areas of Croatia’s fiscal decentralization system, including: (i) the vertical structure of government, (ii) expenditure responsibilities, (iii) taxation and revenue autonomy, (iv) intergovernmental transfers, (v) borrowing and debt, and (vi) asset management.
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Format: | Report biblioteca |
Language: | English English |
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Washington, DC
2021-05
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Subjects: | VERTICAL GOVERNMENT STRUCTURE, FISCAL POLICY, LOCAL GOVERNMENT, DELIVERY OF PUBLIC SERVICES, FISCAL REFORM, SUBNATIONAL TAXATION, REVENUE AUTONOMY, |
Online Access: | http://documents.worldbank.org/curated/en/582501644400447803/Fiscal-Decentralization-in-Croatia http://hdl.handle.net/10986/38287 |
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dig-okr-10986382872022-11-08T23:44:34Z Fiscal Decentralization in Croatia World Bank VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY The problems in Croatia’s fiscal decentralization system have long been recognized. The fragmented territorial-administrative structure, fiscal decentralization efforts with insufficient fiscal autonomy, inconsistent public service standards, unbalanced sources of revenue, and doubts about the introduction of real estate taxes are just some of the concerns. However, there is often no consensus on the possible ways to address them. Compounding the problem is the fact that the recent and still ongoing tax reform, due to its tax relief element, has created the need to compensate subnational governments for the losses of revenues. The COVID-19 pandemic has increased the significance of these issues as the lockdown measures have had a strong negative impact on the existing revenue sources, such as personal income taxes (PITs), of many local and regional government units (LRGUs). At the same time, it may be that the current crisis has created the preconditions and opportunity needed for the government to finally implement reforms in support of fiscal decentralization and more effective financing of subnational governments, reforms that have long been postponed due to political reasons and a lack of popular support. These reforms include addressing the fragmentation of local governments, providing a clearer and more appropriate assignment of functional responsibilities, improving the fiscal equalization system by including the fiscal expenditure needs component, and introducing a working property tax. All of these ideas have long been debated, but there are many reasons to believe that the time is right for at least some of them to be implemented. This report provides a comprehensive overview of the major challenges and options for reform in several critical areas of Croatia’s fiscal decentralization system, including: (i) the vertical structure of government, (ii) expenditure responsibilities, (iii) taxation and revenue autonomy, (iv) intergovernmental transfers, (v) borrowing and debt, and (vi) asset management. 2022-11-08T23:44:33Z 2022-11-08T23:44:33Z 2021-05 Report http://documents.worldbank.org/curated/en/582501644400447803/Fiscal-Decentralization-in-Croatia http://hdl.handle.net/10986/38287 English en CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Economic and Sector Work (ESW) Studies :: Sector/Thematic Studies :: Other Financial Sector Study Europe and Central Asia Croatia |
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America del Norte |
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Biblioteca del Banco Mundial |
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English English |
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VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY |
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VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY World Bank Fiscal Decentralization in Croatia |
description |
The problems in Croatia’s fiscal
decentralization system have long been recognized. The
fragmented territorial-administrative structure, fiscal
decentralization efforts with insufficient fiscal autonomy,
inconsistent public service standards, unbalanced sources of
revenue, and doubts about the introduction of real estate
taxes are just some of the concerns. However, there is often
no consensus on the possible ways to address them.
Compounding the problem is the fact that the recent and
still ongoing tax reform, due to its tax relief element, has
created the need to compensate subnational governments for
the losses of revenues. The COVID-19 pandemic has increased
the significance of these issues as the lockdown measures
have had a strong negative impact on the existing revenue
sources, such as personal income taxes (PITs), of many local
and regional government units (LRGUs). At the same time, it
may be that the current crisis has created the preconditions
and opportunity needed for the government to finally
implement reforms in support of fiscal decentralization and
more effective financing of subnational governments, reforms
that have long been postponed due to political reasons and a
lack of popular support. These reforms include addressing
the fragmentation of local governments, providing a clearer
and more appropriate assignment of functional
responsibilities, improving the fiscal equalization system
by including the fiscal expenditure needs component, and
introducing a working property tax. All of these ideas have
long been debated, but there are many reasons to believe
that the time is right for at least some of them to be
implemented. This report provides a comprehensive overview
of the major challenges and options for reform in several
critical areas of Croatia’s fiscal decentralization system,
including: (i) the vertical structure of government, (ii)
expenditure responsibilities, (iii) taxation and revenue
autonomy, (iv) intergovernmental transfers, (v) borrowing
and debt, and (vi) asset management. |
format |
Report |
topic_facet |
VERTICAL GOVERNMENT STRUCTURE FISCAL POLICY LOCAL GOVERNMENT DELIVERY OF PUBLIC SERVICES FISCAL REFORM SUBNATIONAL TAXATION REVENUE AUTONOMY |
author |
World Bank |
author_facet |
World Bank |
author_sort |
World Bank |
title |
Fiscal Decentralization in Croatia |
title_short |
Fiscal Decentralization in Croatia |
title_full |
Fiscal Decentralization in Croatia |
title_fullStr |
Fiscal Decentralization in Croatia |
title_full_unstemmed |
Fiscal Decentralization in Croatia |
title_sort |
fiscal decentralization in croatia |
publisher |
Washington, DC |
publishDate |
2021-05 |
url |
http://documents.worldbank.org/curated/en/582501644400447803/Fiscal-Decentralization-in-Croatia http://hdl.handle.net/10986/38287 |
work_keys_str_mv |
AT worldbank fiscaldecentralizationincroatia |
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1756576219928723456 |