Within this essay we seek to understand in depth how financial autonomy impacts public administration, identifying some benefits of being able to put it into practice, and together identifying the possible obstacles and limitations faced by entities with financial autonomy. As a result of reinforcing knowledge about this tool with various authors, we can mention that financial autonomy is a mechanism that is based on the ability to manage one's own financial resources independently. Including this tool in public management brings various advantages such as: greater efficiency in resource allocation, a more transparent approach, among others. However, public administration and budget management of the public sector present limitations based on the fact that the needs of the population are unlimited and resources are finite, thus we must take into account that the path towards a new, effective and public management efficient recognizes the need to evaluate the possibility of implementing financial autonomy as a mechanism to increase the efficiency of public management. We can conclude with the main idea that, by adopting this interesting mechanism, government entities can adapt their policies and budgets in a more agile way, responding quickly to the changing needs and demands of society, and with adequate controls they would reflect transparent and effective management.
