Local governments in many countries experience fiscal distress, making it a worldwide phenomenon. For years, many of the local authorities in Israel have been coping with ongoing, acute fiscal distress, which has had a significant impact on their capacity to create and deliver public value to their residents. Using case studies and hard (accounting and statistics) data, the present study attempts to provide a critical analysis of the fiscal distress affecting local governments throughout Israel. Specifically, the present article assesses the fiscal conditions of local governments in Israel and potential remedies for dealing with this ongoing problem.
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