Statistical Analysis of the Tax and Fiscal Disparities in Slovakia on the Regional and Local Level

Features of financial decentralisation are closely connected with the public administration and self-governance systems. Weakness of the local economic and financial potential requires additional financial resources as subsidies, state grants, loans, etc., for an enhancement of initial conditions of the social and economic development in some poorest regions. One of the possible approaches how to reduce the significant regional and local disparities in Slovakia is to optimise the mechanism of taxes and transfers between different levels of governance. The purpose of this research is to analyse the regional and local fiscal disparities in Slovakia as a problem for the improvement of the taxes-transfers mechanism in this country on different levels (state, regional and local), and to develop mathematical models and algorithms for the decision making how to reduce the existing regional and local fiscal disparities in the Slovak Republic.