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) Sasa Drezgic University of Rijeka Rijeka Croatia Title Local governments and economic crisis in Croatia File Paper files are available only for conference participants, please login first. Presenter Abstract The paper deals with possible effects of economic crises on local governments in Croatia. In addition it analyses response of local public sector in terms of countercyclical fiscal policy. Even though there is an ongoing decrease of local budget revenues throughout the country and problems of illiquidity and servicing obligations are increasing, there is no proactive reaction. The approach used so far is focused on reducing investments and conducting occasional minor interventions in scope of local tax or expenditure policy. The main conclusion of the paper that local public sector in Croatia does not induce problems for macroeconomic stability and in the same time cannot provide significant countercyclical measures in terms of local fiscal policy.
