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Financial Disparities among the Municipalities – Situation and Changes

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  • Stefan Ivanov

Abstract

The goal of this study is to determine, analyse and evaluate the situation and the tendencies in the development of local finance. This goal will be achieved through the following objectives: • Analysis and evaluation of the ranking and differentiation of the municipalities according to financial indicators in 1994 and 1996; • Analysis and evaluation of the dynamics of the changes in the ranking and differentiation of the municipalities during the monitored period; • Summary and evaluation about the situation and the changes in the intermunicipal financial disparities. The main conclusions and evaluations of the study indicate that: in 1996 compared to the previous studied year there is monitored an increase in the disparities among several municipalities in good financial situation and the rest municipalities. There decrease the differences in the evaluation of the financial situation of the municipalities, whose values are below the average level for the country. The average and the critical values for all indicators are falling behind from the highest levels, which proves the general deterioration of the financial state of the municipalities. The output from the study can be used by the municipalities for justifying their analyses and forecasts for the local budgets. This output can also be used by the central authorities for setting the state and regional policy.

Suggested Citation

  • Stefan Ivanov, 1999. "Financial Disparities among the Municipalities – Situation and Changes," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 48-65.
    • Handle: RePEc:bas:econst:y:1999:i:2:p:48-65
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