Skoči do osrednje vsebine

Management with capital revenue in Slovene municipalities




1.9.2021 - 31.8.2022

Range on year:

0.13 FTE | 2021

Project leader at FDV: Irena Bačlija Brajnik

Research activity:

Social sciences

The phases of the project and their realization:

The project consisted of three phases. 1.) In the first phase the analysis of legal acts concerning individual municipal capital resources was carried out. The first phase took place from September 1st, 2021 to February 1st, 2022. 2.) In the second phase, a collection of data on capital resources of municipalities was carried out for all municipalities in Slovenia (from 2010 to 2020). The collection covered all capital resources for each municipality according to the time trend (ie how the volume of the resource changed in the period from 2010 – 2020), resources compared between municipalities (in absolute amount and relative to the number of inhabitants, as well as relative to the national average). The second phase took place from December 1st 2021 to June 1st 2022. 3.) In the third phase, we calculated the trends for individual capital resource and correlations according to the selected independent indicators of the characteristics of the municipalities. The handout of this phase are professional and scientific publications. The third phase lasted from June 1st 2022 to August 31st 2022.

Research Organisation:


Citations for bibliographic records:


Globalization and the post-industrial revitalization of local communities have influenced the competition between them (Bramezza 1996). We understand competitiveness as a competition for investors, new residents and tourists (depending on the orientation of the local community). Capability of local communities to compete stems from a wave of decentralization that results in more and more tasks and responsibilities in the domain of local authorities, which gives them the strength and opportunity to design and develop new activities and strategies (Hall 1993). Porter’s (1998) empirical research confirms that a competitive environment is a very important factor in gaining a competitive advantage in the global marketplace. Strategic marketing planning is based on the assumption that the future is quite uncertain and therefore depends on strategic activities and plans. The challenge facing the local community is to develop as a flexible system that can absorb shocks and adapt quickly and efficiently to new development opportunities. Many authors (Phillips 1993; Kotler 1999) point out that strategic marketing planning is more difficult for local communities than for businesses. Companies have clearly defined competencies and responsibilities, a hierarchy, a clear statement of profit or loss, with which they measure annual progress. On the other hand, local communities are constant battlefields where individual interest groups try to assert their interests and strategies. Despite the stated limitations of local communities in strategic market planning, the opportunities that local communities have should not be neglected. Just like companies, they can define their goals and measurable business criteria. Local communities in Slovenia are increasingly adapting to global conditions, as they are fighting for a market position due to increased mobility (as well as cross-border). In doing so, they are, of course, limited by the legal framework that defines fiscal autonomy. However, as recent findings show (Bačlija, Kronegger and Prebilič, 2021), there is still a lot of room for optimizing local fiscal policies. However, tax instruments are not the only ones that local communities compete with in the market. Capital income is also a very important aspect of the financial situation. As a rule, capital revenues of municipalities in Slovenia do not exceed 0.5% of all revenues.Currently databases only provide a sumerative insight into capital revenues, which means that it is not known how much municipalities gain from an individual capital source. According to the legislation, capital sources include revenues from the sale of business facilities and business premises, from the sale of residential buildings and apartments, and from the sale of other buildings and premises. As well as revenues from the sale of means of transport. An important part is revenue from the sale of agricultural land, from the sale of forests, from the sale of building land, and from the sale of property rights and other intangible assets. In addition, it would be expedient (at least in terms of content) to include other types of revenues in capital revenues, which indicate the capital management capacity of municipalities. Capital incomealso includes the group of revenues from the sale of goods and services (entrance fees, waste, etc.) and revenues from property (revenues from rents for agricultural land and forests, for business premises, rents for apartments, revenues from rents for equipment, revenues from rents, revenues from the granted concessions and royalties, revenues from concession fees from special games of chance). The developed database of capital resources would enable to establish wich municipalities are more capable of managing capital. Understanding this causality, however, is crucial for the further policy making in the area of municipal financing.

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