Key trends in municipal finance management in the context of global challenges

A key trend in the development of modern society is local self-government, which has become the locomotive of balanced economic development of the country. The article focuses on the dependence of the municipal finance management system on the territorial organization of local government, a reasonable division of expenditure powers and the establishment of limits for subsidized municipalities. Taking into account practical experience, current legislation and analytical material systematized the main trends in the transformation of municipal finances: the formation of an integrated control model, the integration of initiative budgeting in the organization of the budget process, the focus on strict compliance with the terms of municipal contracts with their expanded treasury support, the provision of support measures to local budgets. The work presents the role of innovative mechanisms of intermunicipal cooperation in achieving results in the implementation of joint infrastructure development, intermunicipal events and the provision of municipal services to the residents of several municipalities. The evolution of the publicity principle of the budget process is aimed at involving the population through an increasing spread of initiative budgeting, which is aimed at solving the most pressing problems through the formation and implementation of initiative projects. In order to improve the quality of municipal finance management, we propose to focus activities on the expansion of preventive and advisory functions, the use of “end-to-end” information technology, the development of financial and nonfinancial support to municipalities, the spread of quality assessment of financial management to budget and autonomous institutions. In addition, it reflects how the quality of municipal finance management is influenced by the use of creative tools and strict compliance with existing legislation by local self-government authorities and specialists of municipal institutions.