Te paper is dealing with the notion and signifcance of economic development on the regional level and, in connection with it, the public sector consistency in the local development fnancing. Te 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. Te 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 fnancing models. Te potential of debt accumulation is rather abundant and therefore unused. Tus, few are those who use these fnancing sources. Te contribution explains why the public sector in Cro- atia needs to start introducing the appropriate fnancing forms of public investments that will be based on the long-term cooperation and integration of economic subjects in the budget fows of local units.