Sound management of public finances as a factor of sustainable development

Abstract

The main message of this paper is that the sound management of public finances is one of the key factors of sustainable development and that the modern concept of public financial management sets a much higher requirements and standards than the classical approach limited to state budgeting. This paper presents the basic aspects of good and effective management of public finances that is of special importance for Serbia and the countries of Southeastern Europe. Serbia has made a significant progress in public financial management in relation to the situation fifteen years ago, but a lot needs to be done, and the greatest challenges are now focused on public debt management, public investment management and fiscal risk management.

Keywords

• public finance
• public finance management
• sustainable development