What does it mean...?

We've found 1 results related to Net savings.

  • Net savings

    The magnitude of the net saving is an indicator of the financial situation of the local entity, its capacity to attend at maturity the financial burden of its indebtedness. It is calculated as follows: sum of income corresponding to taxes, public fees and charges, current transfers and capital income, minus expenses related to personnel, current assets, services and current transfers (expenses not covered by the Cash surplus for general expenses). This result has to be subtracted from the theoretical amortization annuity corresponding to the long-term loans and the guarantees to third parties still pending repayment. Positive net saving is a source of financing for non-financial capital expenditures.