Assessment Of The Budget Independence Of The Territories

Table 1:

No.	Coefficient name	The method of calculating the coefficient	Coefficient value
1	Budget performance coefficient (Cbp)	$C_{b p} = \frac{I_{l b}}{P}$ , (1) where Ilb – local budget incomes (as income can be used income or the total amount of income, taking into account gratuitous transfers from higher budgets);P – the average annual population living in the territory of the municipality.	It shows the amount of income in the local budget per one resident.
2	Budget autonomy (independence) coefficient (Cbi)	$C_{b i} = \frac{I_{o b}}{I_{t b}}$ where Iob - own incomes of the local budget; Itb – total amount of local budget revenues including gratuitous transfers from higher budgets.	It shows the share of local budget incomes in their overall structure.
3	Fiscal sustainability coefficient (Cfs)	$C_{f_{s}} = \frac{I_{o b}}{T}$ Iob - own incomes of the local budget; T - gratuitous transfers from higher budgets.	It shows how many times transfers from higher budgets exceed tax and non-tax incomes of the municipality.
4	Budget debt coefficient (Cbd)	$C_{b d} = \frac{D_{l b}}{C_{l b}}$ Dlb – local budget deficit; Clb – local budget expenditures. At the same time, the local budget deficit can be defined as the difference between the expenses and the budget revenues of the municipality, or the disposable income is deducted from the total expenses of the local budget (if BD is less than zero, then the coefficient takes a value equal to zero).	It shows the level of budget arrears with the date of the budget execution report. The value of this coefficient shows what proportion of budget expenditures is not covered by income.
5	Budget coverage coefficient (Cbc)	$C_{b c} = \frac{I_{t b}}{C_{l b}}$ Itb - total local budget incomes; Clb - local budget expenditures.	It shows how budget expenditures are covered by budget revenues. The values of this indicator distinguish municipalities. It is donors if the coefficient value is more than one and it is subsidized municipalities if the indicator value is less than one.
6	The coefficient of budgetary provision of the population (Csp)	$C_{s p} = \frac{C_{l b}}{P}$ Clb - local budget expenditures; P – the average annual population living in the territory of the municipality.	It shows the amount of expenses of the local budget per one resident.

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