Effective management of local finances as a element in improving local economic development | Efikasno upravljanje lokalnim finansijama kao element unapređenja lokalnog ekonomskog razvoja
2023
Jakšić, Pavle
For normal functioning and development of local self-government, it is necessary to secure financial resources from various funding sources. The basic sources of financing for local self-government are local tax revenues. However, during a period of crisis, local governments cannot rely only on their revenues. To provide the most favourable source of financing, the local government has the task of establishing and implementing an effective debt management policy with the control of its indebtedness capacities. It is by determining this capacity, through various indicators of indebtedness, that it is possible to know what kind of financial health the local self-government has. The paper aims to show the degree of impact of the Pandemic crisis on the indebtedness of local self-governments in 2020. In addition, the paper presents key priority areas for financing local governments during the crisis period.
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