Financial Sustainability Assessment Indicators in Public Sector

Abstract

Sustainable development is a fair distribution of development opportunities which considering to longterm vision and compliance the inter generational and inter period equity and indicates various aspects including economic, social, political and environment. The importance of sustainable development has increased by passing the time and the result of the various aspects of the policies of the public sector. One of the most important aspects of sustainable development is to achieve the financial sustainability that is the government‘s fiscal policies with the long period of time and considering the results of these policies with all of its aspects. In this regard, standard indictors are required to assess the sustainability of public sector activities. The purpose of this paper is to examine the indictors used to assess the financial sustainability and its evolution. These indictors are introdused in two categories as traditional and innovative approaches. The traditional approach that include one-dimensional indictors of finance including: the debt ratio, the primary surplus, the primary gap, the tax gap and innovative approach that include the composite indictors in various areas of specialization including: fiscal responsibility indictor, key national indictors including social, environmental, and economic indicators.