The article examines the socio-economic transformations that began after the independence of Kazakhstan, which prompted the reform of the existing financial system. The formation of its own and effective budget system has become the main task on the path of the country’s development in a market economy. At the same time, the role of the budget system in market conditions, as one of the main tools, in limited conditions of influence on economic processes, has significantly increased. The main task was the formation of a three-level budget system: republican, local regional and local city (district). The Budget Code of the Republic of Kazakhstan and the Law ‘‘On Local Public Administration and Self-Government in the Republic of Kazakhstan’’ adopted in this regard marked the beginning of the Kazakh model of forming their own budgets by local executive bodies. However, the legislation in the field of the budget system does not stop changing. Modernization in the system of public administration, industrial and technological competition, economic integration of states with common borders and interests, as well as many internal problems require changes from local authorities and compliance with current realities. The purpose of  the study is to develop proposals for improving the efficiency of local budget management. Improving the efficiency of local budget management determines the practical significance of the issue under consideration.