POSSIBILITIES AND EFFECTS OF FINANCIAL BORROWING OF LOCAL AUTHORITIES IN BOSNIA AND HERZEGOVINA

Abstract

The paper aims to define and explain the possibilities, effects and limitations of financial borrowing by local authorities in Bosnia and Herzegovina. The methodological approach is based on primary and secondary sources of data, with the aim of collecting as much information as possible about the possibilities and effects of borrowing, in order to get real knowledge about the research problem. This approach is essential in order to unify thoughtful and experienced information in research, but also to explain the research topic with the help of research results.

The aim of the paper is to get scientific knowledge about the possibilities and effects of borrowing of local government units in Bosnia and Herzegovina.

The paper analyzes: what are public services, public debt, as well as the fiscal capacity of local government units, the local debt system, as well as the management of public debt at the local level, the public investment program - capital investments and asset balances.