Impacts of Decentralization on the Local Government Expenditures and Public Services in the EU Countries

Abstract

Successful decentralisation joins public finances and fiscal authority with the responsibility for providing services with functions of local government. The paper deals with decentralisation of public administration in EU countries, focusing on fiscal decentralisation and local government expenditures, allocated for financing the requirements of local and regional sector. Attention is paid to theoretical aspects, reform tendencies, approaches and measuring fiscal decentralisation, but also to the role of local budgets when providing for public services. The research proper is concentrated on the extent of expenditure decentralisation in EU countries over the years 2001-2012 and on mutual relations of local government expenditures, seen as % of general government expenditures, and as % of GDP.