Public finances are characterized by the financial activities of public bodies of the state and the capture of national income (in a forced manner through taxes and laws). This paper will discuss the policy of redistribution of income. In the event of uneven redistribution of income, poverty and inequality can arise, leading to inability to meet the needs or participation in social activities that in a particular society (in the national context) and in time constitute an integral part of a decent, acceptable and approved standard of living. What is in a society of greater inequality in income distribution is greater relative poverty or poverty due to inequality. Economic inequality, which has been spread over the last thirty years in Western developed countries, is the result of a situation in which a small part of the population absorbs most or all the benefits of economic progress, while at the same time the majority of the population has little or no benefit. Unevenly distributed income is also called new inequality, which is precisely this period of continuous redistribution of national wealth and income towards the top of the social pyramid at the expense of the vast majority of ordinary citizens. The paper will define the public finances and the redistribution policy, and the basic theoretical approaches to the redistribution of income will be presented. As the whole world is globally affected by this uneven redistribution of income, Croatia has not remained untouched by this problem, and the situation will be clarified in Croatia.