Fiscal decentralization as a tool for the transfer of competences from the central level ofgovernment to lower levels of government - municipalities and higher territorial units. Theintroduction of fiscal decentralization in Slovakia, a new method of funding, which has the effect ofreinforcing the financial autonomy of these entities, their stability, independence and effectiveness inthe use of funds to implement their plans for investments to meet the needs of residents ofmunicipalities and actual and potential businesses engaged in business activities the territory of themunicipality.