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Abstract

This research presents theoretical–analytical research focused on the issue of municipal financial health in Slovakia. Using a literature review, we identify indicators of municipal financial health across various applied methodologies. On a sample of eight regional urban centers, the paper analyzes and compares two well-established methodologies in Slovakia for assessing financial health – the methodology of the non-governmental organization INEKO, which regularly assesses and publishes the results of financial health assessments for all municipalities in Slovakia, and the methodology published by Tkáčová and Konečný, compiled based on expert studies. The resulting financial health indicator for the monitored municipalities, using both methodologies, is based exclusively on financial sub-indicators specific to each methodology. Differences in evaluation results obtained using different methodologies suggest a need for adjustments to the methodology for monitoring municipal financial health, including the incorporation of non-financial indicators such as sociodemographic and managerial aspects of municipal finances.

Keywords

financial health monitoring local government public finance Slovakia

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Decision-Making and Monitoring the Fiscal Health of Municipalities in Slovakia

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