COMPARATIVE ANALYSIS OF THE FINANCIAL SITUATION OF THE FIVE LARGE BULGARIAN MUNICIPALITIES

Abstract

Different methodologies for financial analysis and accounting standards for calculating financial indicators have been developed and are applied more to business organizations than to budgetary ones. But budget organizations can also be in a better or worse financial condition, which must be analyzed, evaluated and the reasons for it must be sought.
This article analyzes the financial situation of the five largest Bulgarian municipalities without the capital Sofia. They have a population of over 100,000 people and are considered the most economically developed. At the same time, they show differences in terms of their financial policy and financial results, some allocate more funds to capital expenditures, i.e. for development, and others for current expenses and satisfaction of current needs. To varying degrees, they co-finance the activities delegated by the state, for which the state grants subsidies to the municipalities, their policy regarding the sale of assets for more revenue in the budget is different, as well as their affinity for taking on debt.
Conclusions and recommendations were made for better publicity of the budgets of the municipalities, presented on their official websites, which would facilitate the use of data both for scientific research and by interested citizens and organizations represented on the territory of the respective municipality.