Financial Independence of Local Self-Government Units in Acquisition of Sources to Finance Their Activity – Challenges for Self-Government Theory and Practice

This present dissertation focuses on the selected issues of the decentralisation of public finance and independence of local self-government units (JST). Two basic ideas of JST independence have been presented: financial and legal problems to determine the scope of operation and real possibilities of tasks implemented by them. It emphasizes the significance of tax administrative power, which is an indicator of the decentralisation of public authority. At first, there is a review of after-effects of the delegation of tax administrative power to local authorities, then there is a diagnosis of their competence possibilities within the use of tax policy instruments. The deliberations enabled the formulation of a few general conclusions so as to put forward recommendations on the construction of the ultimate solutions within the system of financial funding of local self-government units.