Economic and Financial Attributions of Local Administrative Authorities

Local public administration is one of the important sectors of state administration. Through public administration, state achieves its goals, respecting legal regulations. Local authorities - city councils and mayors – must manage in the name and interest of local collectivities the public business and resources. Many responsibilities were transferred to local administration, getting the first base with financial decentralization, trying to get administration next to citizens, as much as possible. Local authorities have a lot of responsibilities managing local finances. Local finances represent the process of constitution, distribution and utilisation of local incoming funds. Administrative-territorial areas’ needs regarding public services and other financial local needs determined the apparition of local budgets. Local budget is a budget of incomes and expenses belonging to administrative-territorial areas. In budgetary process local authorities have the right to establish, observe, control, follow and charge municipal taxes. In this process they also have to report local budgets implementation and rectification.