The provision of local financial independence increases access to public
services, improves the distribution of reserves and the efficiency of utilities, and boosts local economic capacity. This article presents the methodology for calculating the index of local financial independence, which comprises six main
indicators: local revenue independence, non-tax revenue independence, tax
independence, financial capacity, the ratio of capital costs, and local
expenditure independence. The result of the local financial autonomy index is
calculated based on a total of 210 samples from 21 provinces of Mongolia,
covering the period from 2013 to 2022.
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