Fiscal policy can be defined as a conscious change in state revenues and expenditures whose purpose is to achieve macroeconomic goals of economic policy, such as full employment, stable prices, satisfactory rates of growth in the economy, and the achievement of the external balance. Typically, the impact of fiscal policies on t he economy is reflected by the impact of public spending, ie budget expenditures. Budget spending is financed by tax, ie budget revenues and the budget deficit covered by borrowing in the non-financial and financial sectors. The paper defines the notion of fiscal policy, its objectives, its effects, and the instruments used to achieve the basic economic goals and the impact of fiscal policy on the size and structure of national income. The development of fiscal policy in the Republic of Croatia has also been presented since independence until today, showing the fiscal system (public revenues, public expenditures) and the system of public financing in the Republic of Croatia.