The article presents information about the budget revenues and expenditures of the cities and towns of republican significance – Rīga, Daugavpils, Jelgava, Jēkabpils, Jūrmala, Liepāja, Rēzekne, Valmiera, and Ventspils in 2009, 2010 and 2011. These cities are important nationwide, as they are home to more than half of Latvian residents, as well as they are the main centres of economic activity. Consequently, the municipal financial and economic situation is most significant, as well as the decisions that can both facilitate the economic development and also impact it negatively. And vice versa - the economic activity and welfare of the population closely affect the actions and perspectives of the local government. This is also highlighted in the research papers by other authors - the economic development must be balanced, and its existence and pace depend both on the business activities, as well as on the decisions taken by the state and local government institutions.