| Abstract [eng] |
The purpose of the Master’s Paper is to review the peculiarities of the Local Governments’ financial system functioning and the associated theoretical and practical problems. The paper consists of four parts, in which the essential aspects of the topic are considered. In the first part the concept of the local governments’ financial system functioning, its methods and forms are introduced. The institutions, whose purpose is to put into practice the above-mentioned financial activity are presented and its specific functions are defined. The definition of pecuniary funds, whose aim is to accumulate the local governments’ money resources, is also given in this part. At the beginning of the second part the concept of the local governments’ budget as the basis of any local governments’ pecuniary fund is introduced. Then the sources of the local governments’ budget revenue and the ways of spending the pecuniary funds are explained. At the end of this part I tried to define the problems of balancing out the local governments’ budgets and to show the ways how to solve these problems. The aim of the third part of the paper is to discuss the process of the formation of the local governments’ budget. The methods and principals of forming the budgets are presented and the order of formation, confirmation and implementation are introduced here in detail. The accountability and control of the implementation of the budget as the important means of the financial clearness are discussed here as well. The purpose of the fourth part is to review the loans as they are very important to balance the local governments’ budgets and to sponsor certain projects. The concept of the loans is introduced and the subjects, from whom the local governments can borrow are defined. The limits for loans and the problem of the local governments’ bonds, which give an extra opportunity for loans are mentioned at the end of the fourth part. In the last part the conclusions are given, which were formulated considering the results of the analysis of the local governments’ financial system done in this paper. |
