ASPECTS OF FISCAL DECENTRALISATION IN CROATIA

The majority of modern states, whether unilateral or federal, are organised on more than one level of government. The process of fiscal decentralisation, in Republic of Croatia started in 2001 with new law on local and district (regional) autonomy that has decentralised the fields of education, social and health care. But, the existing model of fiscal decentralisation in Croatia is not effective because is still facing numerous problems in carrying out the decentralisation process, that are visible in too many local units, non-existing measures for fortifying its fiscal capacities, relatively low autonomy in local units decision making process, etc. This paper focuses on problems of fiscal federalism and decentralisation in Croatia. Authors explore the possibility of implementing a new model of fiscal decentralisation which would ensure more efficiency, higher level of decentralisation, geographical division designed according to citizens' needs, better fiscal independence of local units, and higher level of public officials' competence. All of that would surely improve the quality of public goods' provision and would additionally increase the responsibility level of local deputies and citizens' participation.