The role of local government finance equalization on rural development in Latvia
2015
Vilka, I., University of Latvia, Riga (Latvia)
Currently one of the hottest local governments’ issues on the agenda of the government of Latvia is the elaboration of new improved local government finance equalization system, which is an important integral element of the implementation of regional development policy. Local government finance equalization is affecting development capacity of any territory, including rural territories. The purpose of the article is to highlight and discuss in academic society the finance equalization issues that affect the rural municipalities and work out proposals for the new system. The study does not cover all local government finance equalization system’s elements, but gives attention to three – importance of the equalization for rural local governments – municipalities (novads); revenue sources, that are necessary to include in the equalization system; criteria for calculation of local governments’ expenditure needs.
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