Aspects of financing of local self-governing units from the state budget of Georgia

Abstract

This article describes budgetary relations between the different layers of public administration on the light of 2018 state budget that has recently been adopted by the parliament of Georgia. The author stresses issue of over-centralization of public finance system in Georgia that does not deliver development and territorial cohesion but serves for redistribution of relatively small pool of money among Georgian municipalities to maintain balance between local budgets’ incomes and spending. This article highlights necessity for a political reform to change existing practice of public finance management and make tax-payers money focused on development needs.

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