ANALYSING THE FINANCIAL VARIABLES OF BULGARIAN MUNICIPALITIES FOR THE PURPOSE OF THEIR FINANCIAL RECOVERY

Abstract

Some of the latest supplements to the Public Finance Act deal with the local management of public funds and activities and prescribe a procedure for identifying municipalities in a financial difficulty and adopting measures to overcome it. This paper presents a set of methods for analysing the financial variables of individual municipalities on the basis of the methodological guidelines and the information provided by the Ministry of Finance. We have analysed data available as of the end of 2015 about the financial variables of Bulgarian municipalities as they have been defined by legislation and identified some common problems related to the financial management of that segment of the public sector.