Local self-government in Croatia

1. Local self-government in Croatia

2. INTRODUCTION: • A unitary state. • A parliamentary democracy. • TWO TIERS OF LOCAL SELF-GOVERNMENT: • Municipalities. • Counties. • PROCESS OF DECENTRALIZATION: • 1992: Local self-government and administration Act. • 1997: European Charter of Local Self-Government. • 2000: Constitutional amendments: principle of subsidiarity + importance of local and regional government. • 2001: Law on local self-government.

3. The Local Government System A. Local Government Law • A right enshrined in the constitution • March 28, 2001: the Constitution is reformed: • Article VI on local and regional autonomy • - Affirmed principle of separation of powers • - Importance of local and regional government • - Provisions modelled on the European Charter of Local Self-Government • - Local authorities’ rights at the constitutional level

4. 2. The direct participation of citizens in the decision-making process • Local / Regional Referendums • - The power belongs to the people as a community of • free and equal citizens. • - A law may be adopted by referendum • Other Forms of Direct Participation • - Advisory referendum • - Local assembly of citizens • - Complaints from citizens

5. B- LOCAL GOVERNMENT ORGANIZATION - Municipalities : Towns and Communes

6. B- LOCAL GOVERNMENT ORGANIZATION-Counties

7. Region • Zagreb

8. 2-Right of the minorities and status of the local elected councillors. MINORITIES LOCAL COUNCILLORS’ RIGHTS AND DUTIES • Charter of local self-government • Regulations of the council

9. Local Policy A- Local Government Responsibilities CONSTITUTION : • Right to local and regional self-government. • Provisions defining the respective powers of the local and regional. • LOCAL SELF-GOVERNMENT ACT, 2001 : • Responsibilities are devolved from the central government • Public affairs are local self-governments’ own responsibility

10. Local Policy B- Local Government Budget and Finance • Local Government Expenditures • Main types of expenditure (as in 2001): • - housing (69%) • - administration (21%) • - transport, sport and culture (13%) • - education (11%) Total expenses in 2007: HRK 11.9 billion (11.7% increase with regard to 2006). • Compensation of employees: 25% of total expenses, • Use of goods and services: 39%, • other expenses and donations: 19% • others (subsidies, grants, social benefits and interests): 17%.

11. 2) Revenues • According to the law, local freedom in the use of non-tax revenue • Total amount of revenues of cities and counties in 2007: HRK 15.5 billions (a 14.3% increase compared to 2006) • Most important sources of revenue (as in 2007): • - tax revenue : 59% • - non-tax revenue: 34% • - grants : 6% • - loans : 1 %

12. Own tax revenue • - 8% of total local revenue • - Cities freely determine the rate of their local taxes. • - Cities have many tax revenues • Shared tax revenue • - 84% of total tax revenue • - 3 types of shared taxes : • - income tax is shared by the central government, regions and cities • - business tax is shared by the central government and cities • - tax on property sale is shared by the central government and cities

13. Non-tax revenues • - From concessions for the exploitation of mineral waters, spas and drinking water • - Loans • - Other revenues • Central Government Grants - 6% of total local revenues • - Shared allocations of non-tax revenue • Transfers and subsidies • - unequal assignment • - some special statuses still exist

14. CONCLUSION • Some resistance experienced during the first step in the decentralization reform • In 2002 the Senate’s mission assessed the difficulties in the decentralization reform: • - co-operation with the central government is difficult • - a priori control is still in practice • - tax revenues vary too much among communities • - transfers from central to local government are insufficient