COMPARATIVE ANALYSIS OF LOCAL PUBLIC ADMINISTRATION COMPETENCES FROM EUROPEAN UNION COUNTRIES AND THEIR IMPLICATIONS ON LOCAL PUBLIC FINANCES

The comparative analysis of local public administration competences from European Union countries suggested a diversity which have big implications on local public finances if we look to the descentralisation process and the existence of exclusive competences which supposes their sustain from local budget. In general, local public administration has tree types of competences: Own competences/exclusive competences which mean competences gave by law to local authorities and they are responsible for implementation. Local authorities have the right to decide and, also, from the local budget to put in practice what they decide. Share competences which mean competences of local public administration practicing with other levels of public administration, with a clear separation of financing and decision power for each public administration implicated. Transferred competences which mean competences transferred by central public administration to local public administration with necessary funds. The limits are established by central government and local government must put in practice. Exclusive competences are the most relevant as applicability of autonomy financial principle. Financial autonomy rate of local public administration is determinate as own local revenues in total local revenues: Local financial autonomy rate = (Own local revenues / Total local revenues) * 100 How bigger is this indicator, the local public administration demonstrate a high capacity to generate revenues and the possibility to sustain its competences.