Municipal Finance Equalization Process in Latvia

Gross, E. L.; Bruna, Silvija

doi:10.5755/j01.em.17.1.2263

Cited by 2 publications

(2 citation statements)

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“…Municipalities that have revenues that fall short of their finan-cial needs (i.e. can cover 95% or less of their own financial needs) are eligible to receive support from the equalization fund (Gross & Bruna, 2012).…”

Section: Revenue Structure and Fiscal Autonomymentioning

confidence: 99%

Fiscal Federalism in Transition Countries: The Three Baltic States Compared

Groenendijk,

Jaansoo

2016

Public Finance and Management

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This paper analyzes three transition countries (Estonia, Latvia and Lithuania) regarding four essential features of fiscal federalism: (a) the administrative set-up, (b) the tasks and functions allocated to sub-national governments, (c) revenue structure and fiscal autonomy, and (d) fiscal discipline. The practices in the three countries are analyzed for the period 2001–2013 mainly, and compared to practices in the EU-28 at large. Compared to the EU average, fiscal disciplinary performance of the Baltic States (and of local governments) is adequate (and exemplary in Estonia). Tax autonomy of local governments is however very low in all three states; local governments rely heavily on their share in the personal income tax. The Baltic States differ significantly regarding their administrative set-up, but this is consistent with the huge variety in administrative set-up in Europe. In all three countries reform of the set-up is debated continuously. The overall absolute level of spending (in euro per inhabitant) by sub-national governments in the Baltic States is clearly below the EU-average. The shares of the main spending categories at sub-national level differ considerably from the EU-average. This is caused by specific choices regarding the division of tasks between local and central government (i.e. the result of relatively high or low levels of fiscal decentralization in certain policy fields) and/or general government differences (i.e. less or more spending in some policy fields in general).

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Section: Revenue Structure and Fiscal Autonomymentioning

confidence: 99%

Fiscal Federalism in Transition Countries: The Three Baltic States Compared

Groenendijk,

Jaansoo

2016

Public Finance and Management

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“…Issues related to the municipalities in Latvia are studied by E. Vanags (2006) and I. Vilka (2006) focusing on the administrative division of the local governments, V. Vespers (2012) evaluating the development opportunities of the municipalities, E. Gross (2012), S. Bruna (2012) analysing the financial situation of Latvian municipalities and paying more attention to the financial equalization system, and S. Zelca (2008) assessing the revenues of the basic budget in the regional perspective. It shall be noted that the municipal finances are an issue extensively discussed by politicians, representatives of the regional authorities and local governments, however, it has not been investigated comprehensively enough.…”

Section: Assessment Of the Budget Revenue Structure Of Latvian Municimentioning

confidence: 99%

Latvijos savivaldybių finansavimo problemos mokesčių politikos kontekste

Puzule¹,

Žubule²

2015

AESR

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The research aims to raise the problems of the local municipalities in Latvia that are related to a lack of financial resources. An active use of the tax policy to ensure the municipal finances in Latvia is examined in the paper. The authors have investigated the current situation and, using the ideas and experience of the other countries, have elaborated the recommendations on how to successfully adapt the tax policy to the current Latvian conditions in order to improve the financial capacity of the local municipalities thus raising their interest to support the entrepreneurship. Keywords: corporate income tax, local government budget, municipal taxes, personal income tax, property tax.Tyrimo tikslas -parodyti vietinių Latvijos savivaldybių problemas, susijusias su finansinių išteklių trūku-mu. Darbe nagrinėjamas aktyvus mokesčių politikos naudojimas, siekiant užtikrinti savivaldybių finansavimą Latvijoje. Autorės išanalizavo esamą situaciją ir, besiremdamos kitų šalių patirtimi, parengė rekomendacijas, kaip sėkmingai pritaikyti mokesčių politiką esamomis sąlygomis Latvijoje, gerinant vietinių savivaldybių finansinį pajėgumą ir didinant jų susidomėjimą verslumo rėmimu. Raktažodžiai: įmonių pajamų mokestis, savivaldybės biudžetas, savivaldybių mokesčiai, gyventojų pajamų mokestis, nekilnojamojo turto mokestis. JEL Classifications: G22/E22/E23.

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Municipal Finance Equalization Process in Latvia

Cited by 2 publications

References 1 publication

Fiscal Federalism in Transition Countries: The Three Baltic States Compared

Fiscal Federalism in Transition Countries: The Three Baltic States Compared

Latvijos savivaldybių finansavimo problemos mokesčių politikos kontekste

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