Abstract

The agenda of the 58th Croatian Government's session, held on September 28, 2017, included, among other items, a Proposal for an Act on the Financing of Local and Regional Self-government Units. Under the proposed Act, the local government financing system has been changed for the 18th time since 1993, i.e. it changes almost every year. Such frequent revisions of the regulatory framework (accompanied by amendments to income taxation regulations) hamper the long-term financial planning of local government budgets. However, the proposed local government financing act deserves commendation for introducing a new fiscal equalization model.

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