Lessons learned regarding the additional funding of projects supported under the Territorial and Settlement Development Operational Programme in Baranya County

Abstract

The economic decline of Baranya County has been influenced by several factors over the past decades, which collectively contributed to the region’s marginalization.

The efficient and economical use of European Union funds has supported and may continue to support development in the future. Municipal funding sources contribute significantly to the improvement of infrastructure in the county and the quality of life of its residents. In many municipalities along the southern border, these funds represent the only opportunity for development, as few local governments can finance projects from their own resources. This study examines the amount, proportion, and spatial distribution of additional funding allocated to Baranya County. Based on cleaned data, the study seeks to answer the following research questions regarding the increase in resources. Were there more additional funding requests submitted for projects contracted early (before 2018) compared to those contracted afterward? Can spatial differentiation (in terms of legal status, level of development, geographical location) identify areas that were more significantly affected by the additional funding? Which funding schemes stood out in terms of additional allocations? Using the example of Baranya County, the study presents which priorities were associated with projects supported by the Territorial and Settlement Development Operational Programme (TOP) between 2014 and 2023, with the involvement of the county government, and how these projects were geographically distributed within the county. First, we provide a brief overview of TOP priorities at the national level, then the analysis focuses specifically on Baranya County. We outline the legal background of the additional funding requests made during the project implementation phase and provide a comprehensive overview of the possibilities and processes for requesting such funding. The analysis examines the distribution of additional funding over time, by geographical area, funding schemes, and TOP priorities. The insights gained from uncovering these relationships may aid in the planning of support programs for the next funding period.

The key finding of our study is that the highest proportion of additional funding requests occurred for projects contracted during the middle of the programming period, specifically in 2019and 2020. Furthermore, beneficiaries requested significantly more additional funding for larger budget, more complex projects. In terms of spatial distribution, we found that the more developed districts of Eastern Baranya received more funding, indicating that the TOP framework did not contribute to reducing the development disparities between districts.