Local Government Financing – Steps towards Regional Asset Management?

Abstract

It has been a tradition of state tasks (for 250 years) to focus on financing current expenditures. The task financing system introduced undertakes to fund average current expenditures, with utilisation rules stricter than before. In addition, the features characterising the management of assets is also an important issue to consider. The audit should give priority to examining the characteristic features of cooperation in case of multiple entities responsible for financing (for instance in education). Counties play an increasingly important role in regional development which, in turn, could facilitate the sound management of a region’s assets. The region’s human assets may be boosted by the potential improvement in the quality of services stemming from the recent transfer of certain tasks to the government.