Paper/Speech Details of Conference Program for the 18th NISPAcee Annual Conference Program Overview V. Working Group on Public Sector Finance and Accounting Author(s) Sander Pollumae Ministry of Justice of Estonia Tallinn Estonia Title Local government finance in the times of crisis – case study of Estonia File Paper files are available only for conference participants, please login first. Presenter Abstract The paper focuses on effects of economic crises on local government finances in Estonia. The aim of the paper is to describe actions state and local government took to handle difficulties in economy – changes in central-local financial relations, taxation and assets management and also use of EU structural foundations. Also changes in legislation and procedural rules (taking of loan, introducing new taxes and charges etc) are considered (incl. special draft legislation on intervention of central government into local government financial decisions). The first chapter of the paper describes the level of decentralization at the beginning of the crisis and the general effects of the crisis in each country, the relative importance of central and local government related to the GDP, the rate of own revenue sources in the total local government revenues and the change of macro economic indicators (GDP and per capita GDP, unemployment rate etc). The second part of the paper is a country case study. First changes in legislation and decision making procedures are observed. Then changes in vertical allocation of resources and horizontal equalisation and cost sharing are analysed. In addition some examples of reactions of local governments are analysed to identify best practices.
