2020. was defined by the outbreak of global pandemic. As a response to the shock, countries adopt various measures with the aim of protecting population which leads to a decline in economic activity and the emergence of fiscal risks. Fiscal risks can disrupt countries' economic stability momentarily and each country should have a goal to efficiently manage them. Pandemics are a specific source of fiscal risks and as a response, countries must allocate significant funds that were not planned in the state budget. More efficient management of these risks contributes to the robustness of public finances, better execution of the state budget and credibility. As a result of pandemic, a new economic crisis has emerged, which, with its specific features, differs from the crises of the past. In a pandemic, the uncertainty factor regarding the duration and intensity of the shock is particularly important and it is difficult to talk about the pandemic's impact at a time when the shock is still active. The paper analyzes the fiscal developments in Croatia related to the COVID-19 crisis. The results of the analysis show a large decline in economic activity and consequently the largest annual decline in GDP in history. Although government's measures have helped the situation on the labor market, the overall result is still negative. Following the planned level of total expenditures and revenues, there has been a deficit in the general government budget, and public debt is experiencing its highest level in country's history. The analysis indicates that the coordination of the adopted measures temporarily mitigated the adverse effects of the pandemic, but the decline in economic activity, together with support measures, necessarily led to a reduction in government revenue and a strong increase in funding needs. The exact extent of the consequences of this crisis is not yet known and will largely depend on the further development and duration of the epidemiological situation.