ASSESSMENT OF THE QUALITY OF PUBLIC FINANCIAL MANAGEMENT IN THE MUNICIPALITY OF AERODROM USING THE PEFA METHODOLOGY

Effective institutions and systems of public finance management (PFM) play a key role in the implementation of national development policies. Therefore, the aim of this paper is to evaluate public expenditures and financial accountability, that is, to evaluate the current results of the public financial management system in the Municipality of Aerodrom. For this purpose, an adjustment was made to the PEFA framework and six indicators were selected to be evaluated in the selected municipality. The analysis in this paper is based on the guidelines issued by the PEFA secretariat for the functioning of the framework and provides a ranking for all indicators and their dimensions for the period 2021-2023. From the conducted analysis, it can be concluded that the areas of public financial management that are regulated by law are respected at a solid level and the scores are quite high when it comes to the Municipality of Aerodrom. However, there is still room for improvement, especially in the area of realization of transfers from higher levels of government and dedicated transfers, realization of expenditures and the budget preparation process. Therefore, this paper can also serve as a proposal for further legal regulations in some of the areas of public financial management.