Correlation Between the Size of the Municipality and the Funds Invested in Investment Projects

Abstract

Background and Originality: The purpose of the research is to determine how much funds per capita individual municipalities invest in investment projects and how this depends of the size of the municipality. The goal of the research is to determine the correlation between the funds invested per capita in investment projects and the size of the municipality. The originality of the research lies in the fact that it contains in one place data on approved funds from the state budget for the implementation of projects by individual municipalities. Research can also serve individual mayors as an orientation of how much fundings they have managed to obtain in other municipalities, based on different criteria.

Method: We conducted a quantitative research from the data which we found on the internet. The datas we obtained from statistical database of municipal projects in Slovenia financed from the state budget, on the website Transparency International Slovenia. Transparency International Slovenia is a non-governmental and non-profit organization with a status in the public interest at the Ministry of Public Administration, which is part of the international network Transparency International. Because the data presented on this website are incomplete, we searched for the remaining data in various Official Gazettes of the Republic of Slovenia. Statistical datas of the population of individual municipalities we drawn from the website of the Statistical Office of the Republic of Slovenia.   

The data we processed in MS Excel. The results we showed in graphs and tables, and they are also commented.

The database is prepared on the basis of data from the Official Gazettes of the Republic of Slovenia. In addition, we searched for the missing data ourselves, and also checked some of them in various official gazettes, so we believe that the data are reliable.

Results: With the performed study we found that in general larger municipalities, by the number of inhabitants, gaining more resources from the state budget as smaller municipalities. Seen from the perspective of the approved funds, to the number of inhabitants, was with the survey founds that the category of the smallest municipalities (up to 1000 inhabitants ), in a way, even privileged. From the results it is evident that in all time categories had substantially the most approved funds to the number of inhabitants. In this category differ municipality Osilnica and Solčava, which are the amount of funds increased mainly on account of the construction of new roads. Even in the category of the largest municipalities, it is clear that we have deviations. From the average of other municipalities have departed the smallest at the surface, Domžale and Velenje. With the research we came to the conclusion that the stated hypothesis cannot be confirmed and that there is still a lot of space for further research.

Given that the hypothesis has not been confirmed, we believe that it is unjustified for smaller municipalities to complain that they are deprived of funding from the state budget. The results of the analyzes, in certain smaller municipalities, show just the opposite picture. From the obtained data, we have further possibilities for research.

The data obtained from the research are available on the Internet, which does not mean that they are not useful. Data from Web pages Transparency International Slovenia are updated from the data of various official gazettes and presented in a form, which has not been available so far.

Society: The results of the survey can have an impact on society because the mayor of a particular municipality will be able to check what influences fundraising and will be able to use this in making his or her future decisions. Research can be helpful and an idea for further research.

Limitations / further research: The limitations of the research were that not all data of projects were in one place (on the website Transparency International Slovenia). The problem was solved by searching the data in various official gazettes. The proposal for further research is to include in the research and compare other indicators, such as invested funds for investments in the number of employees, company income, average net salary, the area of the municipality. It is also a proposal to include projects derived from EU funds in the analysis.