Public administration efficiency is increasing on the agenda, considering the scarcity of public\nresources and the greater demand of citizens for their needs to be met. This research aims to\nstudy the determinants of the financial efficiency of the Portuguese municipalities. For this ,\nthe determinants were grouped into three categories: sociodemographic, political and\nbudgetary. There seems to be evidence, considering the results, that political determinants\ndo not influence the financial efficiency of municipalities. Regarding the sociodemographic\ndeterminants, it is observed that the financial efficiency of the municipalities is influenced by\nlocation, purchasing power index, tourism and the unemployment rate. Tax revenue and\nfinancial independence are budgetary determinants that positively influence the financial\nefficiency of municipalities. Staff expenditure have a negative effect on it.
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