THE ROLLE OF MANAGEMENT IN INCREASING OF FISCAL CAPACITIES OF LOCAL SELF GOVERNMENT UNITS IN BRODPOSAVINA COUNTY AND MAKING PRECONDITIONS FOR ECONOMIC DEVELOPMENT

Republic of Croatia belongs in group of signifi cantly centralized countries. That means authority to make public decisions including financing system of local self government units (LSGU) is in the hands of the central government. Decentralization process began in year 2001 but central government still procures majority of state revenue and spends the most of the public expenditure. Various aspect research and analysis of fiscal capacities produces data pointing out the problem of inadequate fiscal capacity for providing equal level of public services in all of the local communities as lay down by law. Planning process in LSGU is hampered by absence of legal acts regulating practical role of the local government and administration. Unstable affl uence of finance resources presents significant bottleneck in successful management while uncertainty of financial assets availability prevents many of local governments in detailed planning and execution of any of development measures, within medium-term plan. Within many local units basis of local revenue is too weak for local government to independently carry out development measures.