At the end of 2021, after more than a decade, inflation is in the spotlight again. During 2022, the rate of inflation in the Republic of Croatia, calculated by the Harmonized Index of Consumer Prices (HICP), rose to 13%, which is the highest rate of inflation since 1999, since the beginning of measurements according to Eurostat’s methodology. Considering the role and significance in modern mixed social – market economies, fiscal policy assumes responsibility for the preservation and growth of living standard, especially when speaking in the context of small and open economies such as Croatia’s. In such conditions, a very stable or, after joining the euro area, a formally fixed nominal exchange rate and free cross – border capital mobility are defined as default variables. Under given circumstances, the budget balance of the general government assumes a key role in the stabilization of the economy, and inflation takes on the characteristics of the fiscal phenomenon. With the aim of more successful coordination of independent fiscal policies within the European Economic and Monetary Union (EMU), new and simpler fiscal rules are defined, while structural indicators are defined as auxiliary variables. The assessment of the character of the fiscal policy of the Republic of Croatia established that it was structurally counter – cyclical in the period between 2020 and 2022, which can be accepted for the year 2023 as well, taking into account the necessary anti – inflationary fiscal policy measures.