Modelling of Municipality Indebtedness Evaluation at Regional level

Abstract

The objective of this article is to evaluate and analyse municipal indebtedness of the Czech Republic (CR) municipalities (with the exclusion of the capital city Prague) from the point of view of their size - both for the entire CR for year 2013 and the NUTS2-Northeast (NUTS2-NE) region for the years 2010, 2011, 2012 and 2013. Selected indicators have been used to evaluate municipal debt (MD). One of them is the “budget responsibility” indicator. This indicator will be compulsory for municipalities based on approving the CR constitution law. Another indicator is the share of debt in the total municipality assets. We have used a system approach for executing this analysis.