Budget is the main financial instrument through which the state provides the funds necessary to finance its expenditures and financing government spending. State usually the end of the budget year concludes with the deficit of income in relation to expenditures, most exact – they achieve the budget deficit. It is necessary to finance that deficit, which is usually financed with the state debt on foreign or national market. A typical example of that is the Republic of Croatia, which continuous deal on credits and increases its debt. Along many years the Republic of Croatia markers the budget deficit, where is necessary to set a question of financial responsibility of the State authorities. The State authorities are committed for responsibility and legality of such actions, including responsible, collecting resources for financing and consumption. It is necessary to provide is there fiscal accountability of the State while spending those resources, giving subvention, while regulating tax-duties, new debts, financing the state companies and paying off their debts. Although upon past years was adopted the Law of fiscal responsibility, it is necessary to question its functionality. Looking through the certain criteria in diplomatic work there is established in which sectors is financial responsibility present, in other words, where is not. It is also necessary to confirm how responsible the State provides fiscal politic after fattening budgetary arrivals, in other words, did they make all efforts in collecting those arrivals. A very important statement of Croatian budget is financing of public, the State companies and how good the potential privatization of the State companies would be, and which effects did they have on former privatization. The main goal is to establish where the funds unnecessary are used, on which statements have a stronger effect in order to more effective way of using finance of the State.