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Increasing the effectiveness of public finance in decentralized systems is a major challenge to both economic theory and practice. In broad terms, economic effectiveness means the relationship between the value of outlays incurred and the effects obtained thanks to these outlays. In the public finance sector, such calculations are difficult because the effects of operations in this sector are often...
The paper deals with selected aspects of the issue of financial transfers to local governments from the central budget. The first part of the paper describes the basic types of transfers, their role and limitations in central government financial policy resulting from decentralization. Further on, the authoress discusses the conditions of subsidizing and co-financing local governments under fiscal...
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