ECONOMIC CRISIS FROM THE PERSPECTIVE OF LOCAL SELF-GOVERNMENT

Annotation The economic crisis is seen in all sectors of national economy, affecting the state and its inhabitants. The biggest impact of the economic crisis experienced in local government since 2009, when there was a sharp decline in revenue from shared taxes. Reduction in transfer taxes on personal income was caused due to the performance of the overall state economy, which was accompanied by an increase in the number of unemployed people, reduce employment growth and thereby reducing the tax base. Despite the successful implementation of fiscal decentralization and strengthening the financial autonomy of municipalities, municipalities have limited options to cope with their own negative impacts of the economic crisis on their financial management. The paper is the selected villages, which are representatives of various size groups, pointed out how the economic crisis has affected the revenue side of municipal budgets.