The Analysis of the Local Budgets’ Contribution in the Formation of the Public Financial Resources

Abstract

In Europe, the concept based on which is built the local development theory is represented by the economic and social cohesion. This can be translated in a fundamental principle, namely, the fact that economic and social development should be based on a balanced spatial structure. In this regard, the local budget becomes an important tool of budgetary-financial policy through which the state interferes in the economy at the local collectivities level. This research paper aims to present an impact analysis of the local budgetary resources on the economy at a national level in conjunction with the public financial resources’ formation. The resources of the local budgets are used to finance some economical and socio-cultural objectives and actions, for the coverage of maintenance costs and functioning of the local administrativeterritorial units.

Keywords

• local budget
• budgetary resources
• local autonomy