Local autonomy or decentralization process creats a great diversity of the local public financing alternatives, of which we note in particular municipal bonds. They have a dual role, the alternative of income, on the one hand and a debt instrument, on the other. The paper will try to emphasize the municipal bonds in Romania, taking into account an overview of this aspect and empirical evidences. In this regard, we will use the background offered by literature and legal framework and the official statistics data for analysis to identify the context of municipal bonds in Romania. We estimate the analysis to confirm the use of municipal bonds by local governments, but also a need for improvement that require solutions and budgetary policy options as part undisputed positioning local government finance as an engine of development. We consider the paper can be considered a useful viewpoint in understanding municipal bonds in Romania, thus adding to the existing literature on financial decentralization field.