The financial analysis of Viljandi town and municipality

When considering local government amalgamation, financial management aspects are among important matters. In Viljandi’s case, the focus was set on two questions: 1) would the amalgamation enable achieving better access / quality of local government services to its inhabitants? 2) would the amalgamation improve the investment capability of the local governments. The analysis is based on the data of the budget strategy of Viljandi town 2013-2020 and the budget strategy of Viljandi municipality 2015-2018. Additionally, local government development plans and database of the Estonian Ministry of Finance were used in the analysis preparation.