EXPLORING THE NEXUS OF LOCAL AND CENTRAL BUDGET EXPENDITURES IN BULGARIA: A FUNCTION-BASED ANALYSIS OF LOCAL GOVERNMENTS SPENDING

Abstract

The article represents an analysis of the expenditures of local governments in Bulgaria, focussing on nine key functions, including general public services, defence, public order and safety, economic affairs, environment protection, housing and community amenities, health, education, and social protection. Using statistical data from 2017 to 2021, this study examines the distribution of expenditures at the local level and explores their interrelation with central budget allocations in 2021. The findings reveal notable trends, such as the growing emphasis on general public services, consistent funding for the education and health sectors, and fluctuations in housing, community amenities, and public order and safety expenditures. The study highlights the strategic allocation of resources to meet evolving local needs and underscores the importance of continuous evaluation and prioritisation in resource management. This research contributes to understanding the fiscal dynamics at the local level and provides valuable insights for policymakers and practitioners in optimising public finance management.