A system of local and regional self-governments was established as a value protected by the Constitution in the Republic of Croatia. The types of these self-governing units are municipalities and cities as units of local self-governance and counties as regional selfgovernance, and they consist of representative bodies that are in charge as a legislative body and of special executive bodies, such as mayors and county governors. Local and regional selfgovernment units are financed from different sources of income. Expenses for each unit is finances exactly from these revenues. Revenues and expenses together make up the budget of one specific unit, and it is the most important legal act along with the statute passed by the units. The budget shows all contents of funding sources as well as the plan where these revenues are planned to be spent for the next year. The City of Nin is a local self-government unit in Zadar County. The city of Nin is financed from various sources of income, which is all evident from its annual budget. The budget is the one that shows the direction of development of the City of Nin as a local self-government unit.