Open AccessSustainability and Control Issues of the Financial Management of Local Governments – Through Hungary’s Example
Author(s) -
Csaba Lentner
Publication year - 2019
Publication title -
visegrad journal on bioeconomy and sustainable development
Language(s) - English
Resource type - Journals
eISSN - 1339-3367
pISSN - 1338-8339
DOI - 10.2478/vjbsd-2019-0010
Subject(s) - sustainability , business , control (management) , process (computing) , local government , finance , financial management , government (linguistics) , economic policy , accounting , economics , public administration , political science , management , ecology , linguistics , philosophy , computer science , biology , operating system
The rules and control mechanisms pertaining to the financial management of local governments enhance the sustainability of their budgets, that is, they have an operational risk mitigating effect. This paper presents the Hungarian system of self-government, and its fiscal rules, which have undergone a major reform since 2011, and the system of duties and financing have been aligned. The paper evaluates the reform process that commenced in 2011, and the effectiveness of budgetary regulations. The second half of the paper presents the control system of Hungarian local governments, the strengthening of which also has promoted the sustainability of financial management.