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The field of this Master thesis is economy of small municipalities and its analysis with regards to subsidies exploitation. The goal is the analysis of subsidies exploitation by small municipalities (size < 2000 inhabitants) within the Jihlava district, investigation of its successfulness and financial condition. National public expenditures policies, EU expenditures policies, municipalities budgeting system and financial analysis has been introduced in the theoretical background. As was mentioned earlier, the research sample includes 116 municipalities located in Jihlava district. Respondents were especially mayors or councils (staff) who are acknowledged in budgeting and subsidies obtaining at the same time. The research used Mixed Methods that means quantitative and qualitative approach together. According to research design were methods used as a sequential explanatory research design (QUAN -- qual). Data used for quantitative part was gained from public databases and questionnaire distributed to the mentioned municipalities. The qualitative part included interviews with selected mayors and has brought deeper knowledge and explained particular topics. Statistical analyses were used for testing correlation between financial condition, subsidies exploitation successfulness and perceived satisfaction. Results brought interesting knowledge that with increasing count of municipality inhabitants decrease financial condition. On the other side, the financial condition is independent on exploitation subsidies successfulness but the perceived satisfaction dependent is. Interesting also is that the best results in financial condition have the municipalities which aren't satisfied with subsidies exploitation or have exploit neither.