DOI: https://doi.org/10.36719/2663-4619/117/33-36
Akif Suleymanov
Baku, Azerbaijan
https://orcid.org/0009-0007-1308-3692
akif2002@mail.ru
Ways to Increase Economic Efficiency in Planning Local Budgets
Abstract
This article explores the ways to increase economic efficiency in the process of local budget planning. The focus is on the effective management of local financial resources, balancing of budget revenues and expenditures, identification of priority areas, and the implementation of efficient spending mechanisms. The study also examines institutional and technological approaches that can enhance efficiency indicators in local budget management, with references to international practices. As a result, the article emphasizes the importance of transparency, citizen participation, and the use of modern management tools for economically sound local budget planning.
At the same time, the article analyzes the main challenges in local budget planning, such as resource shortages, inefficient spending, insufficient revenue sources, and violations of budget discipline. To address these issues, the significance of tools such as strategic planning, performance-based budgeting, the program budgeting model, and digital technologies is highlighted. The study provides practical recommendations for local authorities to ensure more efficient and targeted use of budget resources. The article also underlines the necessity of reforms in local budget management in Azerbaijan and stresses the importance of improving the legal and institutional framework in this direction.
Keywords: local budget, economic efficiency, budget planning, financial management, transparency, performance-based budgeting, digital governance