The budget represents the basic financial document of the state or of the local government or self-government unit, in which all planned annual incomes and receipts as well as expenses are shown. Through time, the role of the budget has changed and its functions have widened which caused the development of three budget concepts: administrative budget, consolidated cash budget and economical budget. The consolidated budget of the general state is the end result of the sum of all budgets with the exemption of mutual state transfers, extra budgetary users and local units. By analyzing the consolidated budget of the general state of the Republic of Croatia it is shown how much income is collected and in what purpose is the income spent, or in better words what is the total public spending at the level of a country. The analysis shows that the instability of total revenue and total expenditure results in deficit of the consolidated budget of the general state. Croatian membership to the European integration (EU) launched the process of implementing adjustments for the new budget and macroeconomic policy.