FINANCIAL ASPECTS OF THE POSITION OF LARGE CITIES

Developmental capabilities and effects that large cities produce in social reality have also reflected in the area of public finances. Thus, particularly since the end of 1980s, one can observe the tendencies of more pronounced and more dynamic developmental role of municipal budgets. It denotes a budgetary practice whose main aim is to improve current situation and to make certain developmental concept(s) possible. This is the entrepreneurial model of city management, which is completely opposite of the previous model based on redistributive role of municipal government (Harvey). The concept of large town was introduced in Croatia in 2005. The paper aims at analysing budgetary characteristics of large Croatian towns, particularly within the context of "static" and "dynamic" budgetary practice, and at determining the extent to which the existing budgetary model can be used for effective financing of urban development in Croatian circumstances.