THE IMPACT OF FISCAL DECENTRALIZATION ON PUBLIC ADMINISTRATION

The allocating revenue to the individual budgets of self-governments in the Slovak Republic is a highly sophisticated process. Redistribution of resources using fiscal decentralization is an effective instrument through which the government attempts to eliminate subsidizing of municipalities and self-governing regions from the state budget and thus achieve higher stability of the economy. The function of municipalities and higher territorial units is secured by so-called special purpose tax revenues, which do not go into the state budget but directly into the budgets of self-governments. This research contribution focuses on the revenue side of budgets of public administration institutions for the period of the last five concluding budget years. The analysis demonstrates the meaning and importance of tax revenues for the mentioned institutions as well as the expenditure side of the state budget. In this contribution, a comparative study identified the changes that occurred in the individual years of the presented range and subsequently, evaluated fiscal decentralization and its influence on the revenue side of budgets of municipalities.