This paper defines the basic features of transparency and openness of public administrations, ie local self-government units throughout the main features of the budget. The budget, as the basic financial document of each city and / or municipality, must state the procedure, and contain everything according to the legal regulations. In doing so, it must be transparent, in every step of its creation. In addition to transparency, it is recommended that the budgeting procedures respect the principle of openness, which implies that the participation of citizens in the creation of the budget is allowed, ie the presentation of their proposals, opinions and views. Budget planning is extremely important for the successful management of local self-government units, as in practice the most common situation is the lack of financial resources. The management of local self-government units is focused on programs and plans whose implementation depends almost entirely on budgetary resources. In order to be able to operate smoothly, the local self-government unit pays special attention to the entire budget adoption process, which is very important for the economy of a municipality and / or city, as well as for the local population. Budget users have an obligation to manage the public sector responsibly and thus an obligation to plan budgets responsibly. The City of Mali Lošinj is used as a base example of success for transparency. As one of the first cities in the Republic of Croatia to implement this policy it is the perfect example of good practice.