Fiscal Decentralisation in Slovenia

The purpose of the analysis presented in the book was to examine the compliance of the local self-government finance system in Slovenia with certain underlying principles of the decentralisation theory and guidelines of the European Charter of Local Self-government (MELLS), whereby focus is placed primarily on the coverage of costs incurred with the performance municipal tasks as provided by the law, their structure and degree of correlation between the funds allocated via the mechanism used to calculate eligible expenditure and the costs reported by municipalities. Based on the stated, we wished to find to what extent the applicable finance system satisfies the principle of the proportionality of resources to tasks, as one of the underlying principles of local self-government. Hence, the aim was to find an answer to the question whether and to what extent the amount of financial means acquired through the eligible expenditure formula matches the actual costs incurred by municipalities due to the performance of their tasks and powers.