Local Self-Governments Financing in the Slovak Republic Under Crisis Situations
Local Self-Governments Financing in the Slovak Republic Under Crisis Situations

Author(s): Viera Papcunova, Dana Országhová, Michal Levický, RADOMÍRA HORNYÁK GREGÁŇOVÁ, Jarmila Hudáková
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Crisis situations; Local self-governments; Financing; Tax revenues
Summary/Abstract: Managing crisis situations depends on the preparedness of local self-governments, the availability of their resources, and their ability to respond to changing conditions. The main objective of the paper is to evaluate the impact of crisis situations on the tax revenues of local self-governments. For the analysis we selected a group of small municipalities (up to 199 inhabitants) that are most sensitive to changes in financing. They represent 13% of the total number of municipalities. The evaluation time period is 2005 to 2023, which captures the economic crisis, the pandemic crisis, and the energy crisis. The analysis showed that the economic crisis and the Covid-19 pandemic hit small municipalities the hardest through tax revenues, which saw a decline compared to pre-crisis periods. In addition, Covid-19 also negatively affected local tax revenues. Conversely, the energy crisis has only marginally affected small municipalities in context of reduced local tax revenues.

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