Sladjana Benkovic, Ph.D., Full Professor, University of Belgrade, Faculty of Organizatonal Sciences, Jove Ilica 154, 11000 Belgrade, Serbia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..
Nemanja Milanovic, Ph.D. Candidate, University of Belgrade, Faculty of Organizatonal Sciences, Jove Ilica 154, 11000 Belgrade, Serbia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..
Milos Milosavljevic, Ph.D., Assistant Professor, University of Belgrade, Faculty of Organizatonal Sciences, Jove Ilica 154, 11000 Belgrade, Serbia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..

Abstract

The adoption of the New Law for Local Government Financing is currently underway in a Serbian Parliament procedure. The goal of the new law is the creation of clear government regulations which will define the system of financing for local government entities. This will furthermore create an environment of stability and predictability about revenue planning when preparing local government entities’ budgets, as well as achieving a vertical balance when distributing revenues amongst various state levels. Additionally, these goals are reflected in the establishment of a system to increase the share of public investment in the total expenses of countries and cities, as well as in the vertical balance about the distribution of revenue and jurisdiction at various state levels. In that sense, it is preferable to understand financial models such as public-private partnerships, which have still not, to an adequate degree, been adopted in Serbia, but one which could potentially contribute to the introduction of additional sources of local government financing. In order to better perceive the current capacity of this model of financing local government in Serbia, a study was conducted during the spring and summer of 2016, taking into account a sample of 150 examinees. The results of the study indicate very low human resource and technical capacities in local government about realizing and comprehending the concept of public-private partnership.

Keywords: public-private partnership, local government, financing, Serbia.