Effective management of local finances as a element in improving local economic development

Abstract

For normal functioning and development of local self-government, it is necessary to secure financial resources from various funding sources. The basic sources of financing for local self-government are local tax revenues. However, during a period of crisis, local governments cannot rely only on their revenues. To provide the most favourable source of financing, the local government has the task of establishing and implementing an effective debt management policy with the control of its indebtedness capacities. It is by determining this capacity, through various indicators of indebtedness, that it is possible to know what kind of financial health the local self-government has. The paper aims to show the degree of impact of the Pandemic crisis on the indebtedness of local self-governments in 2020. In addition, the paper presents key priority areas for financing local governments during the crisis period.

The role of local self-government in the implementation of the sustainable development plan: Analytical framework of the process implemented in the local self-government unit in the municipality Opovo

“…In 2020, wages in the municipality of Opovo (50,270 dinars) are lower than the South Banat region (57,125 dinars) by 13.64%, than the region of Vojvodina (57,186 dinars) by 13.76%, and than the Republic of Serbia (60,073 RSD) by 19.50%. However, a significant share has alluvium that is salted or barren, which negatively affects production possibilities (Jakšić, 2023). Also, on the territory of the Municipality there are marshy soils, salt marshes (3.68%) and salty salt marshes (1.58%), while the share of meadow and rite blacks is relatively low.…”