The role of the state in financing of local self-government in the Slovak Republic

The aim of fiscal decentralization in relationship to municipalities was to increase their financial autonomy. Nevertheless, municipalities are constantly tied to the state budget through incomes from personal tax income and transfers, which go primarily to ensure the transferred competencies from state. The aim of the paper is to evaluate the role of the state in the financing of municipalities in the Slovak Republic on the basis of selected indicators. We analysed the selected groups of municipal incomes: incomes from personal tax income and transfers from the state budget in relationship to the total current incomes of municipalities. The object is cumulated data of municipalities in the time series 2014-2020. Database we obtained from the Ministry of the Finance of the Slovak Republic. The analysis showed that, despite the fiscal decentralization, total incomes from the state budget account for an average of 72.50% of the total current incomes of municipalities. Incomes from personal tax income accounts for an average of 44.26% of total current incomes and transfers account for an average 28.24% of total current incomes. Total incomes from the state budget (incomes from yield of from personal tax income and transfers) amount to more than 76% of total current incomes.