Obligation is a appearance related to the placement of funds that after a certain time they had to settle as discussed between the provider and the beneficiaries of certain funds. Borrowing often has negative connotations, which is of course not accidental in practice. Local government satisfaction usually refers to the allocation of funds to finance current deficits to the actual situation where local government expenditures exceed the revenues of the local government or in the case of financial capital projects, which is incidental. A capital project can thus be linked to the construction of infrastructure such as water supply network, road construction, etc. It is important to emphasize and understand the relationship between the central government and local government units, that the local unit must have good arguments for obtaining a guarantee from the central government for project financing. Local units are in charge of the short and long term; short-term borrowing for financing current deficits and long-term financing for capital projects. Local units can issue bonds to get the funds they need. The paper presents the financial position of local units in the period from 2015 to 2018. Local government revenues and expenditures and detailed structure of budget revenues and local government budget expenditures. When it comes to local government debt, gross and net debt should be distinguished. Gross debt comprises accumulated liabilities from previous periods, while net debt represents the difference between financial assets and financial liabilities and is also a useful indicator of the liquidity of local units.