Sustainability and Control Issues of the Financial Management of Local Governments – Through Hungary’s Example

The aim of this paper is to analyse legal and financial dynamics of the self-governance in three countries of the Visegrad Group: the Czech Republic, Hungary and Slovakia. The paper explores compliance with the European Charter of Local Self-Government, financial independence and operational features of self-governance. The paper provides an overview of the regulatory environment that was set up for the local government in the Visegrad countries, examines the powers by local government, and the degree of its financial independence. The financial aspects of self-government are compared, and compliance with major fiscal rules is examined.