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Newsletter no. 71. Employment at the local government level in the Republic of Croatia during the economic crisis

Franic, Josip
Despite the economic crisis and the need to reduce public expenditure, the total number of budget employees in units of local and regional self-government in the Republic of Croatia increased by slightly more than 15% over the period 2008-11. Apart from a nominal increase in expenses for employees, the share of these expenses in total local and regional budget expenditure also went up. Consequently, a substantial number of the units have found themselves in a situation where the bulk of their expenditures are spent on employees, leaving them without sufficient funds to perform their functions. Given that no new unit was established in the reference period, nor were there any major decentralisation breakthroughs that would require the creation of new jobs, such circumstances may be a sign of an irresponsible policy on providing for the unemployed at the expense of local and regional budgets.
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Contributor: Institute of Public Finance - http://www.ijf.hr/eng/index.php
Topic: Economy and Development
Country: Croatia
Document Type: Economic Analyses and Commentaries
Year: 2012
Keywords: Employment, Local Self Government
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