Decentralization reforms in many countries are changing how local governments interact with citizens. To make these reforms successful, strong public financial systems are needed at both central and local levels. Budgeting plays a crucial role in these efforts, 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 mechanisms. It's crucial to have instruments that involve local community members in decisions and provide accessible information to the public about government activities.