diff --git a/backend/api/GetAllCategories.go b/backend/api/GetAllCategories.go
index b26bd0e..879766d 100644
--- a/backend/api/GetAllCategories.go
+++ b/backend/api/GetAllCategories.go
@@ -1,13 +1,13 @@
 package api
 
 import (
-	"backend/internal/category"
+	"backend/database"
 
 	"github.com/gofiber/fiber/v2"
 )
 
 func GetAllCategories(c *fiber.Ctx) error {
-	categories, err := category.GetAllCategories()
+	categories, err := database.GetAllCategories()
 	if err != nil {
 		return c.Status(fiber.StatusInternalServerError).JSON(fiber.Map{
 			"error": err.Error(),
diff --git a/backend/database/categories.go b/backend/database/categories.go
new file mode 100644
index 0000000..e20e0fe
--- /dev/null
+++ b/backend/database/categories.go
@@ -0,0 +1,93 @@
+package database
+
+import (
+	"backend/model"
+	"encoding/json"
+	"errors"
+	"fmt"
+	"os"
+	"strings"
+
+	"gorm.io/gorm"
+)
+
+func CreateCategory(category *model.Category) error {
+	e := Db.Where(model.Category{
+		Title: category.Title,
+	}).FirstOrCreate(&category).Error
+	if e != nil {
+		return e
+	}
+	return nil
+}
+
+func GetCategoryById(id string) (*model.Category, error) {
+	var category model.Category
+	e := Db.First(&category, "id = ?", id).Error
+	if e != nil {
+		if errors.Is(e, gorm.ErrRecordNotFound) {
+			return nil, fmt.Errorf("user not found")
+		}
+		return nil, e
+	}
+	return &category, nil
+}
+
+func GetCategoryByTitle(title string) (*model.Category, error) {
+	var category model.Category
+	e := Db.First(&category, "username = ?", title).Error
+	if e != nil {
+		if errors.Is(e, gorm.ErrRecordNotFound) {
+			return nil, fmt.Errorf("user not found")
+		}
+		return nil, e
+	}
+	return &category, nil
+}
+
+func DeleteCategory(id string) error {
+	var category model.Category
+	e := Db.First(&category, "id = ?", id).Error
+	if e != nil {
+		if errors.Is(e, gorm.ErrRecordNotFound) {
+			return fmt.Errorf("user not found")
+		}
+		return e
+	}
+	e = Db.Unscoped().Delete(&category).Error
+	if e != nil {
+		if errors.Is(e, gorm.ErrRecordNotFound) {
+			return fmt.Errorf("user not found")
+		}
+		return e
+	}
+	return nil
+}
+
+func GetCategoriesFromFile(filename string) []model.Category {
+	data, e := os.ReadFile(filename)
+	if e != nil {
+		panic(e)
+	}
+	decoder := json.NewDecoder(strings.NewReader(string(data)))
+	var res []model.Category
+	decoder.Decode(&res)
+	return res
+}
+
+func GetAllCategories() ([]model.Category, error) {
+	var categories []model.Category
+	e := Db.Find(&categories).Error
+	if e != nil {
+		return nil, e
+	}
+	for i := range categories {
+		var subcategories []model.Subcategory
+		e := Db.Where(model.Subcategory{CategoryID: categories[i].ID}).Find(&subcategories).Error
+		if e != nil {
+			return nil, e
+		}
+		categories[i].Subcategories = subcategories
+	}
+	return categories, nil
+}
diff --git a/backend/database/db.go b/backend/database/db.go
index c1d4726..d2c614f 100644
--- a/backend/database/db.go
+++ b/backend/database/db.go
@@ -43,4 +43,11 @@ func InitDatabase() {
 			CreateUser(&allusers[i])
 		}
 	}
+
+	if os.Getenv("DEFAULT_CATEGORIES_FILE") != "" {
+		default_categories := GetCategoriesFromFile(os.Getenv("DEFAULT_CATEGORIES_FILE"))
+		for i := range default_categories {
+			CreateCategory(&default_categories[i])
+		}
+	}
 }
diff --git a/backend/wallet.conf b/backend/wallet.conf
index 10b43d1..1b6c9ac 100644
--- a/backend/wallet.conf
+++ b/backend/wallet.conf
@@ -4,4 +4,5 @@ ENABLE_TLS=true
 CERT_FILE=/home/tola/certs/localhost/localhost.crt
 KEY_FILE=/home/tola/certs/localhost/localhost.key
 USERS_FILE=users.json
+DEFAULT_CATEGORIES_FILE=default_categories.json
 DATABASE=wallet.sqlite