INDEBTEDNESS OF MUNICIPALITIES AND ITS INFLUENCE ON FINANCING OF SPORT: CASE STUDY OF SLOVAKIA
INDEBTEDNESS OF MUNICIPALITIES AND ITS INFLUENCE ON FINANCING OF SPORT: CASE STUDY OF SLOVAKIA

Summary/Abstract: Indebtedness of public administration has become a key issue of the economic debates and discussions in recent years. Growing public debt negatively influences the economic development and causes serious troubles to every country and its inhabitants. In a paper we analyze and examine the influence of growing indebtedness on municipalities’ decision to finance sport. For our purpose, we chose eight capital cities of the Slovak high territorial units. We analyzed the development of indebtedness and financial health indicators within period 2009-2012. From obtained data we examined how indebtedness influences the decision of selected municipalities to finance and provide sport activities and services. Methodology and methods for data analysis are described in Section 2. We stated hypothesis that indebtedness in selected municipalities causes decreased financing of sport activities. We found out that indebtedness development has direct connections, impacts, and correlation on decision of municipality representatives. Further conclusions and discussion are part of Section 4. Paper is elaborated within national scientific research project VEGA 1/1195/12 Strategic interactions of the Slovak local municipalities in determining the tax rates.

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