Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness

This paper examines the financial sustainability of local governments in Serbia, focusing on the historical evolution of the local government system, revenue and expenditure trends, and reforms aimed at enhancing efficiency and effectiveness. The findings indicate that while the transition to a sing...

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Main Author: Dejan Vučetić
Format: Article
Language:English
Published: Universitas-Győr Nonprofit Ltd. 2025-06-01
Series:Institutiones Administrationis
Subjects:
Online Access:https://administrativescience.com/index.php/instadm/article/view/122/113
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author Dejan Vučetić
author_facet Dejan Vučetić
author_sort Dejan Vučetić
collection DOAJ
description This paper examines the financial sustainability of local governments in Serbia, focusing on the historical evolution of the local government system, revenue and expenditure trends, and reforms aimed at enhancing efficiency and effectiveness. The findings indicate that while the transition to a single-tier model and various reforms have provided stability, challenges remain. Key issues include limited fiscal autonomy, demographic decline, and the disparities of financial resources across municipalities. The paper highlights that although property tax decentralization and the introduction of new local revenue sources have improved revenue collection, differences in expenditure and resource allocation affect the equitable development of local communities. The paper also identifies that administrative reforms, digitalization, and inter-municipal cooperation have enhanced efficiency and service delivery, but further steps are necessary to ensure comprehensive and sustained financial health. Ultimately, it suggests that to achieve long-term financial sustainability, Serbian local governments need reforms that promote greater fiscal autonomy, equitable resource allocation, and a balance between infrastructure investment and social services, shifting towards the latter.
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issn 2786-1929
language English
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publisher Universitas-Győr Nonprofit Ltd.
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series Institutiones Administrationis
spelling doaj-art-586455c96be645b68a01009df35e1d552025-08-20T03:47:12ZengUniversitas-Győr Nonprofit Ltd.Institutiones Administrationis2786-19292025-06-0151506610.54201/iajas.122Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and EffectivenessDejan Vučetić0https://orcid.org/0000-0002-9140-5251University of NišThis paper examines the financial sustainability of local governments in Serbia, focusing on the historical evolution of the local government system, revenue and expenditure trends, and reforms aimed at enhancing efficiency and effectiveness. The findings indicate that while the transition to a single-tier model and various reforms have provided stability, challenges remain. Key issues include limited fiscal autonomy, demographic decline, and the disparities of financial resources across municipalities. The paper highlights that although property tax decentralization and the introduction of new local revenue sources have improved revenue collection, differences in expenditure and resource allocation affect the equitable development of local communities. The paper also identifies that administrative reforms, digitalization, and inter-municipal cooperation have enhanced efficiency and service delivery, but further steps are necessary to ensure comprehensive and sustained financial health. Ultimately, it suggests that to achieve long-term financial sustainability, Serbian local governments need reforms that promote greater fiscal autonomy, equitable resource allocation, and a balance between infrastructure investment and social services, shifting towards the latter.https://administrativescience.com/index.php/instadm/article/view/122/113local governmentserbiafinancial sustainabilityefficiencyeffectiveness
spellingShingle Dejan Vučetić
Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
Institutiones Administrationis
local government
serbia
financial sustainability
efficiency
effectiveness
title Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
title_full Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
title_fullStr Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
title_full_unstemmed Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
title_short Strengthening the Financial Sustainability of Serbian Local Governments by Improving their Efficiency and Effectiveness
title_sort strengthening the financial sustainability of serbian local governments by improving their efficiency and effectiveness
topic local government
serbia
financial sustainability
efficiency
effectiveness
url https://administrativescience.com/index.php/instadm/article/view/122/113
work_keys_str_mv AT dejanvucetic strengtheningthefinancialsustainabilityofserbianlocalgovernmentsbyimprovingtheirefficiencyandeffectiveness