Abstract
<jats:p>Since the budgets of the communities are an important link of the country's development, they should have a clear policy with perspective and innovative plans for budgeting. The budget policy should be based on the ways of solving the priority problems of the community, the implementation of which is directly proportional to the formation of the community budget. The effectiveness of local self-government in each community depends on many factors, including the level and features of decentralization of management. The main link in budget decentralization is the budgets of local governments, which are based on various principles. Own revenues of municipal budgets are still at a low level in our republic, at the expense of which local governments are not able to fulfill the powers assigned to them by law. The municipal budget, being an integral part of the budget system, in fact still remains dependent on state allocations, which is the result of many problems in the field of municipal budget management.</jats:p>