Program and performance based budgeting – way towards consolidating local financial autonomy

Abstract

Actuality of the research resides in the application for the first time in the Republic of Mol-dova of the program and performance based budgeting (PPBB) at the local level. The aim of the article is to evaluate PPBB and its influence on the responsibility of the local authorities and im-proving the use of public money. The research methodology is based on the calculations of the cor-relation reports between different local budget indicators. The results present that the level of finan-cial autonomy depends on the financial possibilities of the administrative-territorial entities. Thus, there is required to supplement the revenues by detecting domestic reserves and their use by the lo-cal administration.