Fiscal policy is part of the economic policy pursued by the state itself. Economic policy should not be seen only as a state intervention in the economy, but as a mix of different policies through which economic growth and development are sought. The most important parts of economic policy are monetary and fiscal policies. Fiscal policy refers to activities managed by the state treasury. One of these activities is government guarantees and public debt. State guarantees imply an insurance instrument through which the State guarantees that the guarantee obligation of the beneficiary will be executed. State guarantees should be in the function of fiscal policy stabilization, but the problem lies in the fact that state guarantees simultaneously affect public debt, more precisely the amount of guarantees is accrued to public debt, which increases. Financial and factual state guarantees are issued in Republic of Croatia. The government is empowered to issue it, and each year it regulates the annual value of state guarantees. State guarantees can also be considered as an instrument of state aid, but as they differ from other types of aid, they are regulated by specific legal acts. The paper deals with the concept and types of state guarantees and the criteria for their issuance, followed by an analysis of state guarantees in the Republic of Croatia in the period from 1993 to 2015.