The main topic of this paper is the analysis of the budget process through the sphere of local and regional self-government, more specifically through a detailed review of budget legislation, especially the procedures prescribed by the Budget Law. Consequently, the budget of a local self-government unit is an act which estimates revenues and receipts and determines expenditures and expenses of local self-government for one year and is adopted by its representative body. Applying the compilation method, at the beginning of the paper the system of local and regional self-government, normative development from the very beginning of the Republic of Croatia, a brief overview of local self-government models, as well as the financing system closely related to the budget are explained. The budget process is explained in detail through the existing normative framework in Croatia, and ends with a review of the possibilities of active participation of citizens in creating the budget. In this regard, an entire chapter is dedicated to the transparency of the budget process due to its extreme importance, especially in the modern information society, which opens up huge opportunities for direct communication. In conclusion, the budget process in Croatia has room for improvement because previous analyzes of certain groups presented in the paper suggest certain irregularities and omissions and, in addition, the public should be made aware of the possibility of participating in local community development by actively participating in budget expenditures.