In order for the system of a certain country to function properly and successfully, the most important factor for successful implementation is finances. Finance represents the collection of funds needed to start, reorganize or expand business through the taxation system, by issuing shares and bonds or in some other direct/indirect way. Local and regional self-government is financed by the budget of the local self-government unit based on its management and legal framework. The budget is a basic financial and legal act in which all income and expenses of a certain city for the budget year are determined. Funds from the budget are collected through various levies and forms, also funds are collected in the form of various types of taxes collected by local and regional administration. Budget revenues are collected through various sources such as revenues from fines, income from own property, city taxes, county taxes, fees, fees, real estate sales tax, etc. Each budget is passed at the end of the current year for the upcoming budget year. It is planned on the basis of monitoring the amount within an individual item of income and expenditure, with the rules prescribed by the calculation plan of the state budget, and it is also used by local administration and self-government units. Many factors affect the size of the budget of local administration and self-government. Some factors that influence this are: the size of the territory, the number of inhabitants, the structure of the economy of the local unit, the system of calculation and collection of taxes, the way of managing the collected funds. In this way, the state and local units get their funds, which must be transparent and justified for the purpose of spending. In order for a specific unit of local government to operate successfully, it must respect the legal framework and sustainably manage budgetary resources in order to achieve the given goal, as well as growth and development.