Vinko Miličević – Office of the Mayor, City of Zagreb, Trg Stjepana Radića 1, Zagreb, Croatia
Zoran Bubaš – Office of the Mayor, City of Zagreb, Trg Stjepana Radića 1, Zagreb, Croatia
Olivera Jurković Majić – Zagreb School of Economics and Management, Jordanovac 110, Zagreb, Croatia
DOI: https://doi.org/10.31410/ERAZ.S.P.2019.159
5th International Conference – ERAZ 2019 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT, Budapest – Hungary, May 23, 2019, SELECTED PAPERS
Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia;
ISBN 978-86-80194-21-9, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.S.P.2019
Abstract
Since 2018, Croatia has a new fiscal equalisation model that, besides simplifying the (horizontal)
revenue sharing with a formula-based fiscal capacity equalising system, transparently distributes
the overall personal income tax revenues to the local government units (LGUs). The LGU’s fiscal
capacity and equalisation share are based on per capita calculations that use 2011 census data. This
paper argues that the new model’s fairness is devalued because the serious demographic change Croatia
has been facing over the last few years is not considered, and that distortion should be mitigated by
using official population estimates.
Key words
Local Government Units, fiscal capacity, equalisation model, depopulation, Croatia.
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