Fiscal Federalism in Visegrad Group

The study presents a retrospective analysis of fiscal decentralizations in V4 countries. The aims of the research are as follows: analyzing the dynamics and possible factors of decentralization, defining the level of homogeneity of fiscal systems in V4 as to fiscal decentralization. Making use of statistical and comparative methods, as well as computing fiscal decentralization index (FDI) for V4 countries, the article posits that there are vast differences in fiscal federalism structures. Key factors for increasing decentralization in 1990s were the necessity to reform administration, the will to abandon the communist legacy of centralized governance and the aspiration to join the EU and to receive its funds. After joining the EU, the countries demonstrate stagnating fiscal decentralization. After the crisis, the V4 countries show different dynamics. Decentralization indicators of Poland and Slovakia are relatively stable, while they increased in the Czech Republic. Hungary is becoming more centralized, following sub-national fiscal crisis. Fiscal decentralization in V4 countries is not deep compared to other OECD countries, but further decentralization is remote because of the lack of demand and political will, as well as some other factors.