State guarantee policy is an important tool for national fiscal and economic policy making. The article reviews the dynamics of state guarantees and the development of guarantees legislation in Latvia. State guarantees are planned in the annual budget law, and in accordance with applicable legislation only the Minister of Finance has the right to provide guarantees on behalf of the State to commit public funds. State guarantees on behalf of state could be provided only for study and student loans and business support programs, as well as for public investment projects to ensure its realization. On behalf of the State the Minister of Finance in 2011 can provide guarantees at amount of 162 330 168 lats, but not more than 10 per cent of forecasted gross domestic product. At the conclusions of the article the recommendations for state guarantee policy development are described.