CONTROL OF STATE AUDIT IN BUDGET REVENUE REALIZATION AND TAX REVENUE DYNAMICS

Size of realized budgetary funds affects the possibilities of meeting public needs, both at the state and at the local government level. The importance of the state audit is in control of realization and use of budgetary funds. The purpose of this paper is to investigate the size of the budgetary funds at the county level in the Republic of Croatia, as well as to explore and analyse the size and movement of tax revenue in overall realized funds. The purpose of this paper is to point out the possibility of influencing government auditing procedures through controls on improving realization and use of funds of local government units. This paper provides an overview of legislative framework governing the structure of local units, financing of local government units and supervision. The empirical part of the paper analyses the general government revenues and overall revenues at the county level and the movement in tax revenues. The main source of data is data of the Ministry of Finance and the State Audit Office. The survey data show that tax revenues in 2014 compared to 2013 have reduced at the level of counties. The share of tax revenues in overall revenues in every county is different. A characteristic of tax revenues is that they do not have a purpose defined by law, unlike most other local government revenues.