Financial determinants for the preparation and implementation of local development strategies

Abstract

The aim of the article was to show the issues of preparing a development strategy for the commune’s local government in the financial context of their realities. In this connection, attention was paid to various sources of raising funds, starting from internal resources – especially local government funds, through external funds, and ending with the policy of supporting fundraising in conjunction with the prepared strategy, allowing to participate in existing development and change programs, as well as and raise funds from private investors. It follows from the considerations that the implementation of the tasks included in the strategy requires financial outlays that exceed the budget capability of municipalities, which is why they are seeking external power. Unfortunately, most often there ism a lack of instruments for their acquisition and active policy in this area. This requires changes, starting from the development of a policy system to support entrepreneurial activities, by creating a climate and incentives for these activities, and ending with a change of the public finance management model, from administrative to integrated.