BUDGET DECENTRALISATION AS A FACTOR FOR THE SIMULTANEOUS DEVELOPMENT OF MUNICIPALITIES AND THE INDUSTRIAL BUSINESS

Abstract

The article presents the results of a study on budget decentralisation and its effects on the development of municipalities and the industrial business. The objective is to reveal the relationship and interdependence between municipalities’ own-source revenues, which are characteristic of their financial and investment policies, and the extent to which industries are developed on their territories. The development of the industrial business is not directly affected, however, by the investment policy of the municipalities. Nevertheless, it contributes greatly to the increase of their own-source revenues.