Since its inception, the main role of state has been meeting public needs. In order for the state to be able to accomplish its tasks, it requires material that is financial means. The sources for meeting common needs have been developing in parallel with the development of the state. Public finances never stagnate but rather follow social and economic changes while the reason for and the way of gathering revenue changes continuously. An overview of the history of revenue development will provide us with an insight into the dynamics of those changes. Since the public revenue system is a result of numerous historic, economic, legal as well as other influences, this thesis gives an overview of public revenue development with regards to the initial slave-owning state structure through feudal to the present day capitalist one. In addition, the development of public revenue has been presented with regards to its classification. The initial interest of the state was protection and defending of the ruling class interests but over time those functions have expanded and new ones have been developed. The costs of carrying out these functions, including the upkeep for the persons who carry them out have also been increasing. This has been particularly pronounced in recent times with the capitalist state expanding its economic and social functions. Only with the French revolution has the position of the citizen been changed and citizens gradually stopped being subjects and became equal participants in the process of revenue gathering and distribution. That change is reflected in the way revenue is gathered and distributed so everyone is entitled to express an opinion on the matter and take part in the decision making process through democratic means. However, the awareness of citizens on the role public finances play in their lives should continue to be increased particularly in countries such as Croatia transitioning from socialist to capitalist state organization.