Theoretical and legal aspects of the financial basis of local government bodies

Abstract

Abstract. This article examines local government institutions' theoretical and legal foundations concerning the financial independence of local government bodies (LGB). It emphasizes the need for continuous legal framework development to establish an effective financial system for LGBs. The effective functioning of LGBs in promoting the socio-economic development of local communities relies heavily on their financial stability.

Local budgets represent a crucial component of the overall budget system and play a significant role in the economic framework of any state, including Kazakhstan. As the state evolves, addressing the issues of adequate financing for LGBs and the establishment of realistic local budgets becomes increasingly important. LGBs that have stable and sufficient financial resources are essential for the socio-economic development of the country.

The article also explores various terms and concepts related to the financial foundations of LGBs and local budgets. However, it does not aim for an exhaustive analysis of the essence and significance of most terms related to LGBs. We believe that legislators should move away from vague and imprecise terms such as "local affairs," "local issues," "local self-government issues," "local finances," and "local budget."

This study employs widely accepted definitions and addresses various terms and concepts that are essential for understanding both this research and future studies. In this context, we focus on the legal aspects of these terms and concepts, which reflect key features necessary for establishing an effective financial system for local self-government bodies. The concept of "financial independence of local self-government bodies" is also discussed. The primary sources of financial resources for these bodies are examined.

The authors utilized a range of research methods, including both general (theoretical and universal) and specific (empirical or practical) approaches. The study concludes that there is a lack of clear definitions and concepts in the regulatory legal acts of Kazakhstan regarding the financial framework for local self-government bodies, as well as a failure to uphold the principle of financial independence for these entities.

State authorities and local self-government bodies, along with their officials, must continuously enhance the legal framework for establishing an effective financial system for local self-governments in Kazakhstan while adhering to constitutional norms aimed at building a legal and social state. The efficient functioning of these local self-government bodies relies heavily on adequate material, technical, and financial resources. The establishment of an effective financial system for local self-governments is recognized as a fundamental legal requirement in today’s democratic and social environments. The findings of this study will support lawmakers in creating high-quality legislation related to local self-governance, ensuring that clear and well-defined terms are established. This will provide a solid financial foundation for local self-government bodies.