Planning budgets of local units depends on the fiscal measures adopted by the Government and the macroeconomic indicators of economic development for the three-year period , as well as the economic indicators of local units . Local units in particular have a very realistic look and the growth of revenue , in particular part of the funds they receive on the basis of participation in joint tax revenues , as well as the local tax and non-tax revenues that local units themselves assess and collect . Local units, while planning budgetary expenditure determine their own priorities taking into account the real growth of common and own budget revenues . Local units must comply with all statutory provisions about balancing the budget, according to which only capital projects are financed by borrowing . The budget is adopted for one fiscal year . With the budget are also adopted decisions on budget execution, and projections of budget spending for the next two years. From the budget must be seen not only the height of budget resources but also their purpose. Local units in the preparation of the budget must take care of the content and manner of presentation of the planned revenues and receipts and expenditures, financing current expenditure from current revenue and capital expenditure from capital revenues, intended use of certain revenues for specific expenditure, borrowing and giving guarantees, the objectives of macroeconomic and Government's fiscal policy in the next three year period. In preparing the budget all revenues and receipts are shown in the budget and allocated for expenditures and tasks that are financed from the budget of the county, city and municipality. This applies to tax and non-tax revenue, as well as to their own revenues, grants, borrowing to finance the budget deficit, and other expenditure. Estimate of revenue and expenditure of the local budget is based on national macroeconomic indicators and the guidelines for the preparation of the plan and the state budget, as well as on their own estimates of growth in economic activity in the area of local government units and their income and expenses. Budget planning begins in late July, when the Minister of Finance delivered counties guidelines with basic indicators for budgeting, so that they can make an estimate of its budget and provide guidance for local authorities on their area. Although is of a three-year budget projections for fiscal and macroeconomic policy, in practice, counties, cities and municipalities make a budget plan for one year, and an outline plan of budgetary spending for two more next year. In the guidelines, not only the growth of revenue and expenditure, but also a priority for the next three-year period, for example: the movement of employee expenditure, expenditure on goods and services, capital expenditures by activities and any planned borrowing, the budget of local units, revenue and receipts and expenses. The basic budgetary principle is that all budgetary expenditure must be in balance with revenues and receipts. Expenses depend on the level, the functions and tasks performed by local authorities. Basic phases of the budgetary process, preparation, approval, adjustment, implementation and reporting on budget execution.