Financial performance and taxonomy of Togolese municipalities

Abstract

This study analyzes the budgetary performance and taxonomy of Togolese municipalities within the context of a rapidly consolidating fiscal decentralization. The central question concerns the nature of municipal budgetary performance and how municipalities can be grouped according to their performance level. The overall objective is to propose a methodology for comparing municipalities using budgetary performance indicators. The quantitative data used comes from the budgets of 117 municipalities over the period 2021-2024 and was analyzed using dynamic clustering. The results reveal significant heterogeneity in budgetary performance, with some municipalities demonstrating better tax revenue mobilization and more efficient use of state transfers, while others remain dependent on state transfers. This diversity justifies the implementation of differentiated support policies based on municipal profiles, grouped into three classes. In terms of public policy, the results suggest the need to promote the mobilization of local resources.