Selected Practical Aspects of the Fiscal Decentralization in the Slovak Republic

In the context of the fiscal decenfralization process, there have been in recent years significant changes in the Slovak Republic years concerning the budgetary determination of taxes and related tax jurisdiction. On the one hand, these changes can be attributed to the overall economic development and crisis effects, on the other hand, local governments resist such changes, calling for the application of the principles of fiscal decentralization. The aim of the paper is to provide a brief overview of the most important changes, that have been made in the process of fiscal decenfralization in Slovakia and accordingly to assess the extent to which these changes have affected the relationship between government revenue and the amount of expenditure, that these government levels incur to accomplish defined tasks. The analysis is based on the database of available data for 2012 - 2017. In terms of assessing the spending, the contribution was based on the volume and structure of expenditures at individual government levels according to the COFOG classification. The analysis of the revenue side was based on the calculation of tax and financial strength at the level of municipalities, higher territorial units and the state. The results of the investigation confirmed, that the financial system of local governments, as set up at present, is the result of both economic impacts and political consensus. Despite the changes made to the budgetary allocation of taxes, the proportion (in percentage) of expenditure by government levels and their revenue was respected, with the most significant self-government tax revenue being a personal income tax, which in addition to the redistribution criteria it takes into account the most financially demanding sectors where local government expenditure is directed, and also contributes to the financial settlement of regional or local disparities.