The purpose of the article is to show the necessity of developing program-oriented municipal budgets. The view of different authors on the subject is presented, as well as good practices of other countries. The existing practice of developing strategic documents and budgets in Bulgarian municipalities is described. A sociological survey was made of the opinion of business organizations as partners of local authorities, regarding their participation in the budget process and in the development of strategic documents for the development of municipalities. The results show a rather skeptical attitude towards the possibilities of business organizations to influence local policies and the development of budgets. A proposal is made in the national legislation and in the local normative base of the municipalities to establish the requirement for coordination of the strategies, plans and programs developed at the municipal level with the annual budgets. Program budgeting at the municipal level is not only possible, but also imperative, due to its efficiency, transparency, opportunity for wider citizen participation in the budget process and in the development and implementation of local policies.