At present, in most countries of the world, with the growth of local budget expenditures, the amount of income sent by the state in connection with the strengthening of their income, as well as the amount of regulated tax deductions, has increased. Local budgets are not only a source of financing social spending, but also a financial resource for local governments in the socio-economic development of regions. According to experts, "important organizational principles of the tax system of Western countries are the central budget and different levels of budgets by the territorial and political structure of the country and a clear definition of the types of income." This article discusses foreign experience in the formation and management of the local budget in the process of public administration