The public sector of the Republic of Croatia is focused on ensuring the functioning of the economy and society. In this final paper, the aim is to analyze the public sector in the Republic of Croatia, taking into account the efficiency of the public sector as an indicator of the development of the Croatian economy and the availability and quality of services provided to citizens of a particular economy.In addition to the definitions of basic terms crucial for the public sector, the paper presents the presence of its representation in the performance of certain activities that are under state control. Taking into account the fact that the public sector can significantly influence the living standards of the population of a given economy, the paper presents the coverage of the public sector, the size of the public sector through the employment element, its efficiency, and the reasons justifying great interest in public sector employment in Republic of Croatia.Furthermore, the paper presents the activities of the public sector in the Republic of Croatia, but also shows the relationship between the public and private sectors, on the example of the Republic of Croatia.