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Promotion of fair, efficient and not corrupted management of public finances from local government is crucial for functional democracy and it includes number of issues, institutions and methods. Fiscal transparency enables citizens to act as consumers by asking for high level of values toward the money they pay for taxes. Transparent operations also makes easier job to local government on offering these values. The New Constitution of the Republic of Kosovo, which was en-forced on June 15 2008, has a special chapter regarding the local gover-nance where is precisely determined basic principles and objectives of local governance in Kosovo. Constitution declares that” basic unit of lo-cal governance in the Republic of Kosovo is municipality. Municipalities has a large scale of local governance and they encourage and ensure acti-ve participation of all citizens on the decision making process of munici-pal authorities (article 124.1). The Constitution in 11 paragraphs gua-rantee the right of citizens on local governance, the request that establi-shment, competences and municipal borders to be regulated by the law, the right of the municipality to get financing from central government, the rights of municipality on cooperation between municipalities and cross-border cooperation, administrative borders of review  of local activi-ties by the central government and also the obligations that municipa-lities has toward respecting the Constitution and the Law. Actual financial legislation for local government has extended the base for self municipal income which enables municipalities to increase their budgets. The aim of this study is to analyze the self income of Kosovo munici-palities and to show the impact of self income on service offering from municipal level to citizens

Own source revenues of Kosovo municipalities and their impact on effective services