This paper analyses the Croatian public sector and comments on the progress achieved in public administration reforms from a functional and institutional perspective. We conclude the presentation by establishing that the present state of organization of the Croatian public sector has historically been shaped by international and Croatian legislative definitions, which are not uniform. This results in a highly non-transparent and presumably inefficient administration of public funds. Therefore, in order to access the effects achieved by public sector reforms so far and in order to plan future reforms, the institutional scope and structure of the Croatian public sector needs to be analyzed in more detail.