|Abstract:||The Grad municipality is one of the smallest municipalities in the northeastern part of Slovenia. It was established in 1998. Spreading over 37.4 km2, it includes seven settlements – Dolnji Slaveči, Grad, Kovačevci, Kruplivnik, Motovilci, Radovci and Vidonci – and has a population of about 2,200. The municipality is mostly agricultural and has no industry. Craftsmanship in various activities prevails.
The financing and running of the municipality of Grad falls under its own jurisdiction and is subject to an adopted budget. The municipality is able to finance itself from its own resources, government funds and borrowing. An important additional source of financing are European Community funds, acquired through tenders, which are then used by the municipality to develop important projects within the municipality. The budget must specify all information on revenue and expenditure, and the scope of the borrowings. The budget must be balanced.
This graduation thesis presents the area of local self-government. It details the characteristics of the budget and its tasks, principles and structure, its adoption and execution. This thesis also presents the legal basis for the funding of municipalities, funding sources and borrowings. It presents key characteristics of the Grad municipality. An analysis of the Grad municipality budget of the last ten years (2006–2015) was concluded. It shows that during these ten years, the Grad municipality successfully gained European funds and used them to better the quality of life within the municipality. Municipality practices and task execution depend on sound revenue and expenditure planning, and on sound management. The success of the municipality in gaining additional government and other funds plus European Union funds is also very important. The municipality can only ensure its long-term development by gaining additional funds and by favorable borrowing, as financial resources are generally dwindling in all areas, while task scopes remain the same or are even expanding. In view of the current situation, the Grad municipality will, similar to other municipalities, find it increasingly more difficult to fulfill the needs of its population.|