The city of Vinkovci is situated in the north-east of Croatia, in the Vukovar-Srijem County. It is the largest city of the said county. Vinkovci is interesting for its favourable geographical position, natural beauty and extremely rich history. It is situated on the crossroads of important state and European corridors. It dates from the Roman age, which makes it the oldest settlement in Europe. Every city, Vinkovci included, has to allocate a budget. The mayor of the city of Vinkovci suggests a budget, but is it gained by a majority vote of the members of the City Council. The goal of this research is to provide a detailed insight into the revenue and expenditure of the city of Vinkovci in the period from 2015 until 2018. The paper has seven chapters. First, it is important to get to know Vinkovci. Basic information about Vinkovci, its rich history, culture, economic indicators and the city infrastructure is stated. Furthermore, the administrative and territorial organization of local units in the Republic of Croatia is explained. The budget of the city of Vinkovci is analysed on the basis of revenues and expenditures. The aim is to analyse and determine whether the city has a budget surplus or deficit. Vinkovci has a great potential for development. In recent years, special work has been done on development and promotion of the city. Therefore, the last part of the paper deals with the analysis of the touristic development strategy of the city of Vinkovci.