Challenges for local authorities: the politics and practice of financial management in the way for substainable development

Abstract

This article deals with the challenges faced by local authorities in the way for Sustainable Development nowadays. The results show that the main challenges faced by most local authorities are: the mobilization of financial resources, the inadequacy of own income, unreliability of central government transfers and weakness of financial management, economic uncertainty, the difficulty of balancing the reality of the local budget with reduced revenues, the widening gap between the availability of financial resources and municipal expenditure needs. Responsibility and financial resource management are the basis for the good governance of local governments, key drivers for public institutions on the improvement path and ensure sustainable development. To successfully implement sustainable development, for ensuring the financial resilience of local authorities it becomes crucial to develop a strategic financial management plan. Financial management can be a tool for improving the performance of local government. Only with effective local government, with financial resilience and sound public financial management, with the active engagement of local government and citizens, it will be possible to achieve the success of sustainable development including ending poverty in all its forms, ensuring healthy lives and promoting well-being for all, ensuring availability and sustainable management of water and sanitation for all, ensuring access to affordable, reliable, sustainable and modern energy for all, promoting sustained, inclusive and sustainable economic growth, promoting peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels are the mission of local government.