THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION
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...
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| Format: | Article |
| Language: | English |
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University of Life Sciences in Poznań
2015-03-01
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| Series: | Journal of Agribusiness and Rural Development |
| Subjects: | |
| Online Access: | http://www.jard.edu.pl/tom35/zeszyt1/art_13.pdf |
| _version_ | 1811293476034183168 |
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| author | Łukasz Satoła |
| author_facet | Łukasz Satoła |
| author_sort | Łukasz Satoła |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-13T05:00:49Z |
| format | Article |
| id | doaj.art-9e3383dcca5e4eb199d6a08636db7f0f |
| institution | Directory Open Access Journal |
| issn | 1899-5241 1899-5772 |
| language | English |
| last_indexed | 2024-04-13T05:00:49Z |
| publishDate | 2015-03-01 |
| publisher | University of Life Sciences in Poznań |
| record_format | Article |
| series | Journal of Agribusiness and Rural Development |
| spelling | doaj.art-9e3383dcca5e4eb199d6a08636db7f0f2022-12-22T03:01:19ZengUniversity of Life Sciences in PoznańJournal of Agribusiness and Rural Development1899-52411899-57722015-03-01135115123THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATIONŁukasz Satoła0UniversityThe 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.http://www.jard.edu.pl/tom35/zeszyt1/art_13.pdffi nancial conditionmunicipalityratio analysiseconomic conditionslocal government |
| spellingShingle | Łukasz Satoła THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION Journal of Agribusiness and Rural Development fi nancial condition municipality ratio analysis economic conditions local government |
| title | THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION |
| title_full | THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION |
| title_fullStr | THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION |
| title_full_unstemmed | THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION |
| title_short | THE FINANCIAL CONDITION OF MUNICIPALITIES IN VARIABLE ECONOMIC SITUATION |
| title_sort | financial condition of municipalities in variable economic situation |
| topic | fi nancial condition municipality ratio analysis economic conditions local government |
| url | http://www.jard.edu.pl/tom35/zeszyt1/art_13.pdf |
| work_keys_str_mv | AT łukaszsatoła thefinancialconditionofmunicipalitiesinvariableeconomicsituation AT łukaszsatoła financialconditionofmunicipalitiesinvariableeconomicsituation |