Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 24 ISSUE 2
Written by Emil MUTAFOV

Bulgaria is a unitary country and municipalities are the only subnational level of self-governance. It is important to have stability and independence in local finances to provide services of high quality. This research's main goal is to evaluate the level of financial independence in rural municipalities in Bulgaria by monitoring the main revenue flow to the municipal budget - through local taxes. There are a few methods used in the process of evaluation, like mathematical synthesis, comparative analysis, and deduction. The research is using the European NUTS classification, Bulgaria's Law on Regional Development, statistical information from the National Statistical Institute, and the Ministry of Finance. Results are going to show where is the weak point in the municipal local finances to gain more independence and how they can increase their revenue. This will allow them to distribute better their financial flows and invest in activities and services that are necessary for their municipality type.

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