Abstract
Assessing the effects of compensation for construction permits for residential and economic buildings in the urban part of Tetovo, the establishment of professional teams for the legalization of illegal buildings and the development of electronic services, on local economic development (LED) of the municipality of Tetovo. For analysing the data generated by the questionnaires, SPSS was used, as a method for testing the hypotheses of the study. The reduction ofthe compensation for construction, the creation of professional teams for the legalization of illegal buildings, the development of electronic services contribute to the increase in the satisfaction of the residents of the municipality of Tetovo, stimulate economic activity and increase fiscal revenues.
Highlights
In the second half of the twentieth century, decentralization, as a process of transfer of responsibilities from central to local government, plays a key role in the field of public finance
The paper will try to assess: if the compensation for construction permits for residential and economic buildings in the urban part of Tetovo should be reduced to be stimulant for new construction; if the establishment of professional teams for the legalization of illegal facilities will affect citizens’ satisfaction, will stimulate economic activity and will increase fiscal revenues; if the property tax and turnover tax rates should be reduced by increasing the market value as a basis for calculating fiscal revenues; if the implementation of electronic utilities will boost citizens’ satisfaction, reduce over-employment in the municipality and reduce operating budget costs
To answer our research questions and validate the study hypotheses, we designed a questionnaire divided into three parts, including: demographic data questions related to citizens' satisfaction, and questions that sought the opinion of citizens on aspects connected to improving the utilities and increasing the fiscal revenues
Summary
In the second half of the twentieth century, decentralization, as a process of transfer of responsibilities from central to local government, plays a key role in the field of public finance. OECD countries are considered as an example of how to implement the decentralization process, and the delegation of a wide range of competencies and fiscal capabilities to their local authorities, respectively. The fiscal autonomy of local selfgovernment units is a precondition for economic freedom. Bulletin of the Transilvania University of Braşov Series V Vol 14 (63) No 2–2021 and services does not improve, taxpayers are not interested in a high level of fiscal decentralization. Fiscal policy measures taken by local governments represent the main force responsible for the competitive business environment and economic wellbeing in both developed and transition countries (Pasichnyi et al, 2019)
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