Fiscal decentralization

The distribution of public income on different state institutions is of decisive importance. If not based on the principals that are the foundation of a state, what is obvious in the distribution of competence and the ways of their accomplishing, it will be a constant source of conflicts, an obstacle for development and a cause that may bring disintegration process. Taxes provide a spectrum of extra fiscal means. They may solve many economic, social but also political problems. Therefore, it is important to improve the system of fiscal decentralization. The system of bound separation for the largest number of incomes and participation in abundant resources have been introduced in the countries similar to our. An exception is a free separation that is the most optimal mean for regulating the relations on different levels of a state.