D 2018

The Problem of Municipal Indebtedness: a Case of the Municipalities in the Moravian-Silesian Region

MAJEROVÁ, Ingrid, Irena SZAROWSKÁ, Radim DOLÁK, Marian LEBIEDZIK, Jarmila ŠEBESTOVÁ et. al.

Basic information

Original name

The Problem of Municipal Indebtedness: a Case of the Municipalities in the Moravian-Silesian Region

Authors

MAJEROVÁ, Ingrid (203 Czech Republic, belonging to the institution), Irena SZAROWSKÁ (203 Czech Republic, belonging to the institution), Radim DOLÁK (203 Czech Republic, belonging to the institution), Marian LEBIEDZIK (203 Czech Republic, belonging to the institution), Jarmila ŠEBESTOVÁ (203 Czech Republic, belonging to the institution), Tomáš PRAŽÁK (203 Czech Republic, belonging to the institution) and Dominik VYMĚTAL (203 Czech Republic, belonging to the institution)

Edition

Ostrava, DEVELOPMENT AND ADMINISTRATION OF BORDER AREAS OF THE CZECH REPUBLIC AND POLAND: SUPPORT FOR SUSTAINABLE DEVELOPMENT, p. 151-157, 7 pp. 2018

Publisher

Editorial Center VŠB-TU Ostrava

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50602 Public administration

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

RIV identification code

RIV/47813059:19520/18:00011078

Organization unit

School of Business Administration in Karvina

ISBN

978-80-248-4229-5

Keywords in English

budgets; debt; financial stability; indebtedness; municipalities
Změněno: 21/11/2019 15:04, RNDr. Daniel Jakubík

Abstract

V originále

Municipalities may find themselves in a situation where they do not have sufficient funds in their budget to cover expenses. This leads to the search of foreign resources, either in the form of repayable or non-repayable funds and hence in debt. The question of the indebtedness of municipalities is one of the discussed topics in the Czech Republic. This is due to the recently increasing municipal debt, which accelerated in the 90´s of last century and still affects more than half of the municipalities. The aim of this paper is to find out the debt situation of all 300 municipalities in the Moravian-Silesian Region, namely the ability to repay their debts and to find out whether this repayment is a problem for municipalities. For this purpose, the ratio of the total debt to the current budget balance was selected. The municipalities were monitored between the years 2010 and 2016. It was found that in the case of an indebtedness indicator regarding the ability to repay its liabilities in the medium term, the municipality in the Moravian-Silesian Region as a whole do not show a high degree of risk, more than sixty percent of them are stable and few municipalities have to focus on improving it.