A szlovákiai közösségfinanszírozási rendszer és annak kritikája
The Evaluation of the Municipal Financing System in Slovakia

Summary/Abstract: The personal income tax redistribution system of the Slovak Republic has several elements that adversely affect a large part of the country’s population, practically dividing the municipalities and their inhabitants into two groups. Although the revenue from the total personal income tax is distributed among the regional governments (30% between the county and 70% between the local governments), the assessment of the share redistributed to the local governments shows significant discrimination. This is mainly due to two elements: the first is the redistribution based on the altitude of local governments, namely that those above 300m altitude get a significantly higher share than those at lower altitudes. The second discriminative rule is the one that ensures a disproportionally larger share of redistributed funds to larger localities (above 50 thousand inhabitants), to the detriment of smaller ones. The paper introduces the detailed functioning of the redistribution system from the standpoint of the municipalities, and quantifies its effects with a focus on the territories inhabited by ethnic Hungarians.

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