Fiscal rules are meant to prevent debt and spending from getting out of control, but they often overlook economic factors that affect sustainability. Past rules focused on spending control without considering economic fluctuations or debt effects on growth, leading to issues during economic crises. New fiscal rules are needed at the local government level to ensure both short-term and long-term sustainability and promote economic efficiency. Experiences from Slovakia, Slovenia, and Croatia show the importance of reevaluating fiscal rules to achieve these goals.