The paper is dealing with the notion and significance of economic development on the regional level and, in connection with it, the public sector consistency in the local development financing. The subject of research is habitual forms opposed to the contemporary ones of external debt accumulation of the regional units on the example of Osijek-Baranja County. The paper is trying to research what kind of public debt structure can ensure an unobstructed and expectedly fast economic and regional development taking into consideration the former financing models. The potential of debt accumulation is rather abundant and therefore unused. Thus, few are those who use these financing sources. The contribution explains why the public sector in Croatia needs to start introducing the appropriate financing forms of public investments that will be based on the long-term cooperation and integration of economic subjects in the budget flows of local units.