The issues of ensuring effective management of budgetary processes at local level and compliance with modern requirements are considered. The main requirement for local budgets is that every Tenge from the budget aimed at developing the funded entity should be justified by capital gains, improvements in the quality of productive resources or living conditions of the country's population. The article includes the analysis of interbudgetary relations based on the example of the economy of Kazakhstan. They include monetary relations between the authorities of different levels regarding the delimitation of the types of expenditures and revenues on continues basis which enter the country's budget system and distribution (redistribution) of funds between of different level budgets in terms of budgetary regulation. The authors propose to clearly allocate spending functions among the authority levels, consolidate their respective funding sources, and formulate a system for providing financial assistance to disadvantaged regions. Expenses of the city budget are carried out according to 19 programs. The authors state that in their structure the costs of agricultural activities, land relations have a constant dynamic of an unreasonably small share. The significance of the material is in the conclusions and recommendations contained therein, which can be practically used in carrying out the tasks of improving the effectiveness of local budget management.