The most important factor in the functioning of all of the social systems is finance. Financing implies gathering funds and it's a disposition on certain expenditures for effectuation of set goals. Financing of local and regional self – government is executed by a budget of self – government units, his management and his regulatory framework measures. Budget recourses are collected through different levies and taxes which are collected by local and regional self – governments. In municipal and city taxes include: surtax on income tax, consumption tax, tax on holiday homes, tax on the use of public areas, while in county taxes we include: inheritance and gift tax, tax on - road motor vehicles, vessel tax and lastly taxes on slot machines and fun games. There are a lot of existing factors that influence the budget amount: population, the economic structure of the local community, the way of managing with collected facilities, billing system and collecting taxes. It gives insight into how does the state with its local units comes by money, then how they spend it and with what purposes. Politics of local and regional self – governments is sustainable management of budgetary resources and subsequently development and growth of those same self – governments. The objective of this paper is to associate the legal framework of accounting, planning and executing budget with certain specifics of local self – government units.