Comprehensive assessment of the financial sustainability of local budgets in conditions of decentralization
DOI:
https://doi.org/10.24136/ceref.2025.004Keywords:
financial stability, local budget, independence of local budget, budget revenues, subsidy, budget provisionAbstract
Initially the global financial and economic crisis, decentralization processes in many countries, and further the coronavirus pandemic, as well as the war in Ukraine have increased interest in the concept of financial health, financial condition and, more specifically, in the financial stability of local authorities. A system of indicators for a comprehensive assessment of the financial stability of local budgets has been proposed and substantiated in this article based on the previously conducted analysis of existing scientific approaches to assessing the financial stability of budgets. The determined methodology was tested on the basis of the data of territorial communities of Transcarpathian Region (Ukraine) for 2021.
Downloads
References
Ahrens, T. and Ferry, L. (2020). Financial resilience of English local government in the aftermath of COVID-19. Journal of Public Budgeting, Accounting and Financial Management, Vol. 32 No. 5, pp. 813-823.
Burrit, R.L.; Schaltegger, S. (2010). Sustainability accounting and reporting: Fad or trend? Account. Audit. Account. J. 23, 829–846.
Garmini, S.; Grossi, G. (2018). Financial Sustainability and Intergenerational Equity in Local Governments; Bolívar, M.P.R., Subires, M.D.L., Eds.; IGI Global: Hershey, PA, USA, pp. 179–205.
Hruza, F. (2015). Public sector organization financial ratios' recent development as a matter of financial innovation. Investment Management and Financial Innovations, Vol. 12 No. 2, pp. 88-95.
Iacuzzi, S. (2021). An appraisal of financial indicators for local government: a structured literature review. Journal of Public Budgeting, Accounting & Financial Management.
Sinervo, L.-M. (2020). Financial Sustainability of Local Governments in the Eyes of Finnish Local Politicians. Sustainability, 12(23).
Zhang, D. & Liu, J. (2021). Challenges and Countermeasures for the Sustainable Development of Local Finance under the Impact of COVID-19. China Finance and Economic Review, 10(1), 117-128. https://doi.org/10.1515/cfer-2021-0007.
Kostyrko, L.A.&Velentejchyk, N.Yu. (2016). Methodological principles of comprehensive analysis of financial sustainability of local budgets. Finansovyj prostir, 1, 83 – 92.
Lubkej, N. & Kramarchuk, S. (2012). Practice and problems of budget lending in Ukraine. Svit finansiv, 4, 150 – 156.
Luta, O., Bojarko I. & Pigul, N. (2012). The improving methods of assessing the financial stability of the local budget. Aktualni problemy ekonomiky, 9 (135), 194 – 201.
Methodological recommendations for assessing the level of financial capacity of local communities (project) (2021). Ministry of Development of Communities and Territories of Ukraine. Web site: https://decentralization.gov.ua/uploads/library/file/751/0._Проект_Методичні_рекомендації.pdf.
Podik, I. (2017). Assessment of the current state of tax security of Ukraine. Ekonomika ta derzhava, 4, 46 – 51.
Ruda, Yu. & Kalachova, G. (2019). What hinders the implementation of the state budget. VoxUkraine. Web site: https://voxukraine.org/prognoz-ne-fakt-shho-zavazhaye-vikonannyu-derzhavnogo-byudzhetu/
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Central European Review of Economics & Finance
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
