The main objective of this study is to show the role of public finances in the economic and social development of the modern state, changes in the share of public spending in GDP through the history and its present role in the globalization process. Public spending accounts for a significant proportion of GDP. On the one hand, public spending allows country to carry out its functions in providing public goods, and on the other hand it has a significant impact on the economic and social development of the country. The process of globalization has changed the role of the state, and also has changed the role of public spending. Good management of the country by the government is a key element of development of each country, including the use of the benefits of globalization. Globalization has much more powerful effect on a small country than on a large as a small country has a greater dependence on foreign trade. There is no dilemma as to whether to include in the globalization process, but the only question is how to do it.