Do the local communities gain greater or smaller meaning in the changed globalsituation when the sovereignty of the national states changes? This is an actual question for Montenegro as well. By institutional solutions the local self-government may achieve greater or smaller autonomy, however its actual autonomy will always be limited comparatively to the original incomes, available for performing affairs and functions from the independent working field, and the established level of freedom in distributing this income. However, the opposite is going on. Continual decrease in original income of the local self-government would be reasonable if the extent of the issues of its functioning decreases as well. Despite the obvious reduction of independent functioning, the latter is relatively smaller in comparison with the level of decrease in incomes. By decreasing original budget incomes of local government its effectiveness is reduced as well and consequently also its importance for the local inhabitants. In the case that additional sources are approved (donations, subventions, egalisation funds), certain conditions, defined by the central government have to be fulfilled. At the same time, the central government has the right to control the expenditures from these sources. In this way, the state reduces incomes of the local self-government, expands its original incomes, expands its influence through such additional sources, and transforms local organs into performers of its own aims and politics.