Decision-Making and Monitoring the Fiscal Health of Municipalities in Slovakia.

This article examines the assessment of municipal financial health in Slovakia by comparing two established methodologies: the INEKO Institute's publicly accessible financial health index and the academic methodology developed by Tkáčová and Konečný. Both approaches rely primarily on financial indicators but differ in their choice of metrics, weighting, and analytical depth, resulting in varying evaluations of Slovak regional capitals' fiscal conditions. The study finds that while INEKO's method offers transparency and ease of public use, it lacks qualitative and non-financial indicators such as governance quality, strategic planning, and socio-demographic factors, which are incorporated to some extent in the Tkáčová and Konečný approach. The authors recommend a hybrid model combining financial and non-financial indicators—including demographic, social, and management factors—to provide a more comprehensive and context-sensitive evaluation of municipal financial health, particularly relevant for Slovakia and similar Central and Eastern European countries with fragmented local governance and high transfer dependence.