The local budget is based on the planning and monitoring of amounts within a single item of income and expenditures, and in accordance with the prescribed calculation plan of the state budget that they apply i local units. The Budget Act is the basic act of the Central Government, while the Statute represents the basic act of the self-governing unit, i.e. it is the highest and most important legal act of the unit, and therefore all other general acts related to the scope of local self-government must be harmonized with it. The statute for the self-governing unit has the same significance as the constitution for the entire state. The Law on the Financing of Local and Regional Self-Government Units regulates the sources of financing, the income tax distribution system, subsidization of decentralized functions and fiscal equalization of local self-government units. Local units provide funds in their budget to carry out tasks within their self-governing scope. Local self-government units can be financed from tax revenues, own revenues, earmarked revenues or from various aids depending on the regulations in force. In the continuation of the work, the total revenues and receipts, as well as expenditures and expenditures of the city of Obrovac and the City of Dugi Selo are analyzed.