With the adoption of the Constitution in 1990., Croatian citizens are guaranteed the right to local and regional (regional) self-government. With the declaration of independence in 1991. units of local administration and self-government are defined in Croatia. Local self-government units are municipalities and cities, and regional selfgovernment units are counties. The Republic of Croatia is a state governed by the rule of law, which means that within it there are certain rights that must be respected. They exist in order to limit power, but not only state power, but also the behavior of citizens in accordance with rights and regulations. The Constitution of the Republic of Croatia stipulates that state power in the Republic of Croatia is organized on the principle of separation of powers between legislative, executive and judicial, and is limited by the constitutionally guaranteed right of citizens to local and regional (regional) self-government. The budget of the units of local administration and self-government is a financial overview of the revenues and expenses available for the functioning of the units of local administration and self-government for the upcoming budget year. The budget is a basic financial act that is adopted in accordance with the Budget Law, and it determines the income and expenses for a particular budget year. The budget enters into force on January 1st, before which the various stages of the budget process precede. Many participants participate in the budget stages, but it is the Government that proposes the budget proposal, and the Parliament has the final say and approves it.