Self-Sustainability of Local Political and Territorial Cohesion. Analysis of the major Changes in the System of Financial Equalization

Abstract

In Portugal, the financial equalization had several ad- justments on regulatory policy over the last 30 years to correct regional disparities. Distribution criteria are seek to ensure a minimum of financial resources to all municipali- ties, the redistributive function of public resources between the central state and the municipalities has been subject to continuous change, not always achieving its objectives. This paper presents an analysis approach of the major equalization system changes, relating the application of its criteria and indicators with results obtained in local financ- es, seeking responses to self-sustainability concerns of local policies and territorial cohesion.