Lagoa was the Algarve municipality with the greatest effectiveness and financial efficiency in 2019, according to the Financial Yearbook of Portuguese Municipalities, presented this week.
In the Yearbook, to which Lusa had access, the maximum score was obtained by Porto, with 1,744 points out of 1,900 possible, followed by Lagoa (1,681), in the Algarve, and Arronches (1,635), in the district of Portalegre, municipalities that lead the lists of large, medium and small-sized municipalities, respectively.
"Only 75 municipalities will be able to consider themselves with a satisfactory level of financial effectiveness and efficiency – based on the indicators selected by this Yearbook – when obtaining a total score greater than or equal to 50% of the global score", it is highlighted in the study, of the Order of Certified Accountants (OCC) and the Polytechnic Institute of Cávado and Ave.
According to the study, 49 of the 75 municipalities with a satisfactory global level obtained a score between 50% and 70% of the maximum possible score.
The districts of Lisbon, Faro and Leiria managed to integrate half or more of their municipalities in the list of the top 100 in terms of financial effectiveness and efficiency.
In order to reach this 'ranking', the authors took into account municipal installments in 10 indicators: Liquidity Index, Ratio between Operating Income (less amortizations and provisions) and Operating Income, Passive Weight payable in Assets, Liabilities per inhabitant, Rate of financial coverage of expenses incurred during the year, Rate of financial coverage of expenses incurred during the year, Degree of execution of the effective balance, Total Debt Ratio, Surplus Ratio and Direct Taxes per inhabitant.
The Financial Yearbook of Portuguese Municipalities is a joint work between the OCC and the Accounting and Taxation Research Center of the Polytechnic Institute of Cávado and Ave.