To the Topic of Business Activities of Municipalities

Business activities of municipalities, however, always have the nature of subsidi­ary activity, municipalities being financed from the state budget primarily. This is connected with the fact that municipalities may influence their incomes, and thus improve their economic situation, by forming conditions for business activities of other subjects.

Thus, two types of the municipal budget incomes related to business activities can be distinguished the incomes from business activities of the municipality and the incomes from business a.ctivities of-otber subjects conducted in tbe area of tbe municipality. As a matter of course, the two types of incomes defined in this way are limited by certain factors that can be on the other hand influenced by municipalities to some degree.

Municipalities as well as legal persons and institutions founded ar established by them may conduct business activities only if the municipality has decided so in the prescribed way in accordance with the law and if the municipality and its subject have obtained necessary licences under the rule of law in force - i.e. trade licence in most cases.