Establishment of administration and local self-government in the Republic of Croatia as well as in the Republic of Slovenia began after independence in the early 1990s when we withdrew from the Socialist Federal Republic of Yugoslavia and established our own countries. In 2001, regulations were passed in the Republic of Croatia aimed at introducing changes in the local self-government system and making it more efficient, and this process is also called decentralisation. Decentralisation would mean the transfer of authority from the centre to the lower parts of the same centre, as regards decentralisation of local self-government, that is, the transfer of tasks from the state administration to local self-government bodies. The main problems in the implementation of decentralisation in Croatia are the lack of political will, vision and strategy, as well as the lack of funds available to local units. Comparing the local self-government in Croatia with that in Slovenia, there are considerable similarities between them and some differences, some of which could be applied in Croatia. We are primarily referring to the transfer and provision of financial resources for the performance of transferred tasks, the elimination of joint revenues of the state and local units, the establishment of a first instance body that supervises the spending of public money from the budget.