This paper aims to show the impact of municipal own source revenues execution in municipal capital investments execution. Municipalities of Republic of Kosovo especially Municipality of Prishtina faces a low capital investments execution which is supposed to be consequence of low own source revenues execution. This paper intends to show the relationship between own source revenues execution and capital investments execution in Municipality of Prishtina. By trend analysis is shown that in period 2006-2012 municipal own source revenues have been increasing and after 2013 they have been decreasing. Also the trend line estimates a decrease of municipal own source revenues in forecasting period 2016-2018. The significance of own source revenues execution in capital investment execution in Municipality of Prishtina is analysed by regression analysis which showed that own source revenues execution has impact in capital investment execution but the increase of own source revenues, if circumstances would remain unchanged, would have a negative effect-would increase the surplus. This paper proves that Municipality of Prishtina faces with not well budgetary planning and mismanaging of funds.