The State Budget is a document according to which all government revenues and expenditure for a fiscal year are planned. It is proposed by the Government and adopted by the Parliament. The State Budget can be balanced (when government revenues are equal to government expenditure) and out of balance (when government expenditure exceed government revenues and vice versa). The State Budget can be divided into government Budget revenues and government Budget expenditure. When we talk about government revenues the most important thing to pay attention to are taxes from which revenues of the State Budget of the Republic of Croatia are primarily derived. Revenues derived from taxes relate to various types of taxes, such as: value added tax, income tax, property tax, corporate tax. Government Budget expenditure is determined according to the purpose for which the financial means from the State Budget are spent, e.g. expenditures for employees, material costs, capital expenditures, aid and other expenditures which the state plans to have in the forthcoming fiscal year.