It is the best classified in the Algarve in the Financial Yearbook of Portuguese Municipalities 2024, occupying second place nationally among medium-sized municipalities, with 1,504 points, just behind Abrantes (Santarém) and ahead of Castelo Branco.
The report, prepared by the Accounting and Taxation Research Center of the Instituto Politécnico do Cávado e do Ave (IPCA), with the support of the Order of Certified Accountants (OCC) and the Court of Auditors (TdC), highlights the good overall performance of the Algarve municipalities, placing the district of Faro among those that have half or more of their municipalities in the group of the 100 most efficient in the country.
According to the yearbook, the district of Faro appears alongside Lisbon and the Autonomous Region of Madeira as one of the territories that stands out most for its effectiveness and sustainability in municipal financial management.
The analysis is based on ten performance indicators, including liquidity index, debt, budget execution, average payment terms and direct taxes per inhabitant, among other criteria. The report highlights that only 86 of the 308 Portuguese municipalities reached a level considered satisfactory of financial effectiveness and efficiency, that is, at least 50% of the maximum possible score. Tavira is the only Algarve municipality to feature in the top ten in the country, reinforcing the Algarve’s position as a region with consistent improvement in local financial management.
Sintra, Abrantes and Óbidos lead the financial performance ranking
At a national level, the Financial Yearbook of Portuguese Municipalities 2024 is led by Sintra (Lisbon), with 1,695 points, in the category of large municipalities, followed by Maia (1,683) and Amadora (1,554). Among the small ones, the highlight goes to Óbidos (Leiria), with 1,606 points, followed by Murtosa (Aveiro) and Santa Cruz das Flores (Azores). The researchers conclude that smaller municipalities continue to face greater difficulties in achieving high levels of efficiency, due to the low volume of their own revenue, particularly municipal taxes.
Across the country, the report recognizes an overall improvement in municipal financial management, evidenced by the reduction in debt, faster payments to suppliers and better budget execution, confirming a trend towards consolidation of local finances that began almost a decade ago.
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