EFFICIENCY OF THE MUNICIPALITY’S ACTION IN THE CONTEXT OF THE SYNTHETIC ASSESSMENT OF THE FINANCIAL CONDITION ON THE EXAMPLE OF THE KAMIENNA BASIN MUNICIPALITIES

The public sector is affected by the surroundings, multitude of stakeholders and pressure of increasing the effectives and enhancing the quality of action. Its activity has direct or indirect influence on the development of the local economy. The po-sition of the territorial authorities requires a solicitude of the financial situation, which defines the efficiency of its function-ing. The financial condition is a multidimensional phenomenon which impedes the unambiguous assessment. Its precise and wide description requires including many various aspects of activity. Some pointers may indicate that it is good while other may signal problems. The aim of this study is to assess the financial state of selected Eastern Poland municipalities with the synthetic index. The construction of the synthetic feature enables the measurement of the multidimensional phenomenon with one numerical value, as well as linear alignment of studied units