Evaluation of solvency and quality of municipal finance management as a measure to enhance the efficiency of public finance management: evidence from the Nizhny Novgorod oblast
Importance The article focuses on the current issues of enhancing the efficiency of public finance management in municipalities of the Russian Federation, illustrating the Nizhny Novgorod oblast. I examine local budgets of municipalities. I also study theoretical and methodological issues of evaluating the solvency and quality of local finance management. Objectives The research pursues improving the methodology and practical mechanisms to evaluate the financial position and quality of public finance management at each level of the fiscal system of the Russian Federation. Results I analyzed experience showing how the methodology for evaluating the solvency and quality of municipal finance management was practiced in the Nizhny Novgorod oblast. I determined the reasonableness of its use relying upon consolidated reports of local budgets and the need to elaborate it using standardization methods. Conclusionsand Relevance The proposed method allows monitoring the quality of financial management at the level of municipalities so to use its results for decision making purposes in the short and long term. Considering the shortage of budgetary funds at each level of the budgetary system, executive bodies should ensure more efficient use of monetary funds by improving the quality of financial management as one of its priority objectives.
Keywords: public finance, solvency evaluation, quality, efficiency, financial management
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