PUBLIC FINANCES MANAGEMENT – ART OF EFFICIENT MANAGING OF PUBLIC FUNDS

This article presents the content of public finance management and its key element is decentralization, which is also considered as the path to Moldova’s modernization. The aim of the decentralization is to provide qualitative public services. Decentralization is defined as a process of transfer of administrative and financial powers from the central government to the local government or private sector. It is also analyzed the implementation process of performance management of public finances in the Republic of Moldova. It is researched and identified the role of the intergovernmental state budget through the budget equalization transfers mechanism. In the Republic of Moldova the implementation of the budget based on program and performance contribute to the development and strengthening of public financial management