The budget is a system through which public revenues are directed towards meeting public needs, in other words, the budget achieves the possibility of investing the collected funds for the intended purposes. The budget must be very well developed and organized to ensure the implementation of all plans where the funds raised, except for general administrative needs, are invested in various projects and programs to improve the quality of life of all citizens. In addition to the regulations, laws and guidelines to be followed when compiling the budget, the Budget Act also prescribes budgetary principles that must be followed. In the period from 2015 to 2018, the example of the city of Pula shows the function of the local budget and the most important goals of local units in the fiscal year. Over the years, the city of Pula has mostly collected funds from operating revenues related to tax revenues, revenues from administrative and administrative fees and property revenues, while the city treasury is empty of expenditures for employees, material expenditures and assistance given abroad and within the general budget. Differences were observed in the last observed year compared to previous fiscal years, as the city had a budget deficit that year. By adopting the Strategy for the Development of the Urban Area of Pula 2016-2020. it opens up the possibility for new projects and the realization of a vision of where the city wants to be in the future.