THE PROBLEMS OF FINANCING CAPITAL ECONOMIC AND URBAN INFRASTRUCTURE ON THE FINANCING OF PUBLIC COMPANIES

The system of financing public companies, particularly those dealing with economic and communal infrastructure, is largely determined by the main characteristics of these enterprises that significantly influence the choice of financing instruments. Financing instruments of public companies may range from market prices of their products and services, utility rates and taxes, compensations from the central budget, loans to domestic and foreign investments and other sources. The principal role in the financing of public companies belongs to utility rates. However, financial theory still has not included utility rates into fiscal revenues, while the practice has shown that there is a large number and different types of rates. It abs also shown that the obligation of paying utility rates is not regulated clearly, enough. If we agree with the opinion that utility rates are a special form of public revenue that has autonomous characteristics and principles, financial theory and practice must give a final definition of utility rates. Along with market prices, utility rates, taxes, and transfers from the central budget, we now find borrowing from the banks and other financial institutions as a rather frequent instrument of financing public companies. The trend of increased borrowing by public companies calls for certain limitation of usage of that particular financial instrument. The reason is direct relationship between the borrowings of public (mostly utility) companies and incurring debts in local self-government units. Since public companies are important for society in general, the,supervision over their financial operations should primarily belong to the central level.