Evaluation of Financial Stability of Territories Based on the Indicators for the System of Territorial Accounts

Abstract:

The main purpose of this study is the development of methodological statements for assessing the financial stability of local areas on the basis of the methodology for building the System of National Accounts (SNA). In the conditions of methodological limitations related to information, the authors developed the basic principles for the formation of the System of Territorial Accounts (STA). We defined the main accounts of the developed STA, which include: consolidated accounts of a territory; accounts by types of economic activity; territorial (satellite) accounts; allocation of accounts of individual territories. On this basis, the authors developed an algorithm for determining the indicators of the financial stability of territories using a multidimensional model for determining its financial flows. To determine the state of financial strengths, we proposed a working hypothesis on the classification of states depending on the values of the effectiveness and balance criteria. With positive criteria in the short term, the state of a territory is defined as absolute financial stability; with positive efficiency and negative balance values — normal financial stability; with opposite values — unstable state; and the absence of positive values for both criteria means a financial crisis. The study also builds STA in the framework of two subjects of the Federation: the Sverdlovsk region and the Khanty-Mansi Autonomous Area — Yugra. Further study of various aspects of financial stability will allow obtaining more adequate results of the activity of territories, including the determination of the state of bifurcations and catastrophes of the financial stability of regions and municipalities.