Decentralization reforms in many countries are changing how local governments interact with citizens. To make these reforms successful, strong financial systems are needed at both central and local levels. Budgeting plays a crucial role in these reforms, but there are challenges in developing and implementing local government budgets. Accountability and transparency are key for better decision-making on budgets. Community involvement is important, combining legal, political, and administrative methods. Laws and budget tools that involve local communities in decisions and provide information to the public are crucial for effective local government accountability.