LOCAL BUDGET PROCESS AND LOCAL ECONOMIC DEVELOPMENT

The local budget process is in close connection with the economic development of the territorial-administrative units, firstly because the former implies the collection of budget revenues based on which local authorities provide public services to citizens and ensure the provision of such services by third parties. Also, through the implementation of expenditure, local government creates and maintains a favorable climate for local citizens and local traders for them to thrive and stimulates the creation and expansion of business agents, with direct impact on citizens, by increasing their income and creating new jobs. Also, the existence of good local public services can make that area more attractive for citizens and business people willing to settle in that territory. In the context of the local budget process for the achievement of the common objective of local economic development, local authorities focus the human, intellectual and financial resources in the private sector and local bodies, setting out short, medium and long-term plans and strategies.