Project description

The first phase of the fiscal decentralisation process in Croatia began in 2001 when the overall legal and financial framework for local and regional self-governance was re-examined and a limited number of functions in health, education and social welfare were devolved to counties and larger cities. 
This project formed part of the second phase which committed to further decentralisation for the purpose of allowing greater influence and responsibility for development at local level.
The project specifically involved an evaluation of the existing system, identifying and calculating the costs of decentralised functions, as well as an analysis of the fiscal impact of the decentralisation of specific tasks. 
A fiscal equalisation model was developed, to calculate the financial requirements of local governments for obligatory tasks, their financial capacity and the remaining fiscal gap.

Project activities

  • Gathering and analysis of fiscal data
  • Analysis of data needs and development of database support for the data
  • Development of website for fiscal decentralisation
  • Development and application of a fiscal equalisation model
  • Development and implementation of statistical information system components
  • Introduction of quality standards in the collection and processing of statistics and data required for the model
  • Staff training to enable them to do ‘what-if’ analysis on the data
  • Presentation of findings and general overview of EU strategies related to fiscal decentralisation
  • Evaluation and quality assurance