630 Public Sector Economics with Budgetary Financing

630 Public Sector Economics with Budgetary Financing

  • Study programme and level: Professional degree programme Administration 1st Cycle
  • 2nd year
  • 8 ECTS
  • Course type: Core
  • Lectures: 60
  • Tutorial: 30
  • Other forms of study: 30
  • Individual work: 120
  • Lecturer: Veronika Petkovšek


1. Objectives and competences


  • discovers the basics of economics in public sector in terms of market production, from the theoretical bases for the introduction of market criteria in public sector to the policies and practises in the public sector,
  • applies the acquired knowledge in practical situations,
  • spreads and deepens the knowledge on the role and meaning of public sector, budget, European Union, increasing competitiveness and determining efficiency and effectiveness of public sector,
  • analyzes the fields of public sector with basic concepts of public sector functioning.


  • is able to integrate micro and macro levels of public sector economics,
  • is able to use basic concepts for analysing public sector fields,
  • is able to apply the acquired knowledge independently in practical situations,
  • is able to judge independently public policy measures in the fields of public sector.

2. Content

  • The function of public sector
  • The role and importance of public sector
  • The structure of public sector
  • Government influence on the functioning of public sector
  • Growth theory of public sector and public choice theory
  • Forms of government interventionism in the public sector
  • Budget and public expenditure policy
  • The European Union and the public sector
  • Privatisation of public sector and experiences in other countries
  • Increasing competition and commercialization of public sector
  • Determination of the efficiency and effectiveness in public sector
  • Case study

3. Readings

  • SETNIKAR CANKAR, Stanka et al. (2009). Ekonomika javnega sektorja s proračunskim financiranjem. Fakulteta za upravo, Ljubljana.
  • SETNIKAR CANKAR, Stanka et al. (2007). Značilnosti javnega sektorja v Sloveniji in ugotavljanje njegove učinkovitosti. Fakulteta za upravo, Ljubljana. 
  • SETNIKAR CANKAR, Stanka et al (2007). Ekonomika javnega sektorja in proračunsko financiranje: primeri iz prakse: (študijsko gradivo). Fakulteta za upravo, Ljubljana.
  • BAILEY, Stephen, J. et al. (2003). Public Sector Economics: Theory, Policy and Practice. Glasgow Caledonian University. Palgrave.
  • SETNIKAR-CANKAR, Stanka (ur.), STARE, Janez (ur.), PEVCIN, Primož (ur). (2014). Ekonomika in menedžment v javnem sektorju v razmerah gospodarske krize. Fakulteta za upravo, Ljubljana. (izbrani prispevki).
  • SETNIKAR-CANKAR, Stanka (ur.), PEVCIN, Primož (ur). (2012). Razumen in razumljen javni sektor v Sloveniji. Fakulteta za upravo, Ljubljana. (izbrani prispevki).
  • Aktualni domači in tuji članki (Mednarodna revija za javno upravo, Economic and Business Review, The Economist in ostalo; razpoložljivi v e-obliki).

4. Intended learning outcomes


  • is able to understand the basic economic problems and legitimacy in public sector and to link them with other subjects,
  • is able to analytically discuss and handle a particular economic question or problem and to provide the findings to the others.

5. Learning and teaching methods

  • Lectures
  • Practical work
  • Case study
  • E-learning

6. Assessment

  • Written exam (can be passed with two tests) (100 %)