Nowadays, when many governments are currently suffering strong financial difficulties, the conduct of the public sector has become relevant. Increasing public debt and deficit has asphyxiated many governments, particularly at local level, which have suffered a reduction of revenues and expenditure, along with limitations on the deficit and the use of debt. In this scenario, financial sustainability of local governments became very relevant. This contribution is a debate on the definition and measurement of such concept; in addition, it has been also presented factors that could affect financial sustainability, highlighting possible future lines of research