THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION

Journal Title: Journal of Agribusiness and Rural Development - Year 2015, Vol 1, Issue 35

Abstract

 The aim of the study was to asses the fi nancial situation of municipalities in the terms of variable macroeconomic conditions. Ratio analysis and correlation analysis of variables (budget indicators) were used. Deterioration in the fi nancial situation of the municipalities in the period 2008-2012 related to the slowdown of the GDP growth has been shown. The analysis of indicators proved that the fi nancial crisis affected most negatively the fi nances of local governments in 2009-2010, subsequently adjustment measures took place. The fi nancial independence of municipalities and their propensity to invest decreased signifi - cantly. The crisis at the earliest and most substantially affected the biggest cities due to the high dependence of their budgets on tax revenue. Confi rmation of this relationship was also correlation analysis between current income and operating surplus of local governments. The deteriorating fi nancial condition and growing debt can cause an increase in the level of the fi nancial risk assumed by the municipalities.

Authors and Affiliations

Łukasz Satoła

Keywords

Related Articles

 WYMIAR TERYTORIALNY W PERSPEKTYWIE NOWEJ POLITYKI SPÓJNOŚCI W ODNIESIENIU DO OBSZARÓW WIEJSKICH – PRZYKŁAD WOJEWÓDZTWA DOLNOŚLĄSKIEGO

 Ewaluacja wdrażanych w ostatniej perspektywie finansowej polityk UE powinna być podstawą kształtowania nowych kierunków i zasad wydatkowania funduszy europejskich w celu poprawy skuteczności ich wdrażania. W artyku...

 LEGAL ASPECTS OF A MANAGEMENT OF INFRASTRUCTURE PUBLIC INVESTMENTS IN REGIONS. DILEMMAS OF THE SOCIO-ECONOMIC DEVELOPMENT

 This article provides for an analysis of legal aspects of certain particular investment processes within technical infrastructure in the Polish regions (voivodeships, but in the counties and communes as well). Thos...

 PRODUCTION AND ECONOMIC DISAGRARIZATION OF FARMS IN POLAND – ATTEMPT AT MEASURING THE PHENOMENON

 To implement an efficient policy of the development of rural areas it is necessary to measure and evaluate processes occurring on farms. The paper is an attempt at evaluating the advancement (intensity) of the disa...

 FACTORS CONTRIBUTION TO THE ADOPTION OF PRODUCTION TECHNOLOGIES BY POTATO GROWERS IN NORTHWEST BANGLADESH

 The present study was undertaken to determine the factors which contribute to the adoption of potato production technologies by the growers. The adoption of potato production technologies by the growers was measure...

 THE ISSUE OF PAYMENT BACKLOGS IN COMMERCIAL TRANSACTION – LEGAL AND ECONOMIC ASPECTS

 The main purpose of the article is to present economic and legal aspects of payment backlogs in commercial transactions. In terms of economic aspects, the study focuses on the structure and cycle diversity of corpo...

Download PDF file
  • EP ID EP143016
  • DOI 10.17306/JARD.2015.13
  • Views 74
  • Downloads 0

How To Cite

Łukasz Satoła (2015).  THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION. Journal of Agribusiness and Rural Development, 1(35), 115-123. https://europub.co.uk/articles/-A-143016