Assessing the financial condition of Lithuanian municipalities in rural regions

Laura Aidukienė, Kazlauskienė Vilma

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The article analyses the issue of the analysis and assessment of municipality’s financial condition that is relevant theoretically and practically. The relevance and importance of the analysis of municipality’s financial condition based on financial reports and other information show that regular and timely analysis can disclose strengths and weaknesses of the municipality’s financial management as well as highlight fiscal problems and provide the information necessary to make corrections. The aim of the research is to assess the financial condition of Lithuanian municipalities in rural regions. Ten financial ratios, which aim to analyse and assess the financial condition of Lithuanian municipalities in rural regions, are presented referring to literature and considering the peculiarities of the accountability of Lithuania’s public sector. In the research, it is possible to divide Lithuanian rural municipalities into three groups according to their level of rurality: municipalities of strong rurality, medium rurality and weak rurality. The research, which revealed the ability of Lithuanian municipalities on different level of rurality to cover their financial liabilities, their financial capacity to perform their functions, the ability to manage own assets, and financial autonomy, was performed referring to the consolidated financial reports of municipalities announced publicly and by applying the SPSS software.
Original languageEnglish
Title of host publicationECONOMIC SCIENCE FOR RURAL DEVELOPMENT: FINANCE AND TAXES - NEW DIMENSIONS IN THE DEVELOPMENT OF SOCIETY
Place of PublicationLatvia
PublisherLatvia University of Agriculture
Pages108-116
ISBN (Print)9789934846601
Publication statusPublished - 2014

Publication series

NameEconomic Science for Rural Development
PublisherLatvia University of Agriculture
Number33
ISSN (Print)1691-3078

    Fingerprint

Keywords

  • Financial condition
  • Rural municipality
  • Ratio analysis

Cite this

Aidukienė, L., & Vilma, K. (2014). Assessing the financial condition of Lithuanian municipalities in rural regions. In ECONOMIC SCIENCE FOR RURAL DEVELOPMENT: FINANCE AND TAXES - NEW DIMENSIONS IN THE DEVELOPMENT OF SOCIETY (pp. 108-116). (Economic Science for Rural Development; No. 33). Latvia: Latvia University of Agriculture.