Importance of proper management of public finances in economic development

The purpose of this study was to examine the importance of proper public financial management to ensure economic development in the Western Balkan countries. The study was based on a comparative analysis of financial policies and budget management practices in the countries belonging to the Western Balkans region, namely Albania, Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, the Republic of Kosovo, and Serbia. The methodological approach included analyses of statistical data from official websites and sources. The key findings of this study included coverage of the role of money in the proper management of public finances, as well as the analysis of the economic policy and management of economic resources of each country in the Western Balkans and comparison of the dynamics of the state budget, revenues, and expenditures for 2021-2023 of all countries in the Western Balkans region. Based on the analysis of statistical data, key aspects affecting the efficiency of public financial management in the Western Balkans were identified, such as the transparency of budgetary processes, the effectiveness of the fight against corruption, and the efficiency of the use of financial resources. The unique and objective data obtained in the study helped to cover the specifics of financial management in each of the countries of the region and identify factors limiting or facilitating their economic development. The conclusions of the study emphasised the need for reforms in public financial management in the Western Balkans to support sustainable economic growth and socio-economic stability in the region. A special focus on transparency, efficiency, and accountability for budget spending can help increase investor confidence and strengthen the country’s economic system