JAVNI ZAJAM KAO INSTRUMENT FINANSIRANjA MUNICIPALITETA – FUNKCIJE I OGRANIČENjA

Abstract

The subject of research in this paper is the institute of public loan as an instrument for financing public needs of municipalities - cities and local selfgovernments. The paper will highlight the causes of the growing importance of the public debt instrument at the local level, as a phenomenon that follows the tendency of global affirmation of the idea of fiscal decentralization. It will also point out the elements of the legitimacy of rational use of public loans, as well as the nature, scope and consequences of different types of restrictions on local borrowing at global and domestic level.