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Photograph: Photo by Emilian Robert Vicol, used under CC BY

The Croatian government will present on Thursday its budget proposal for 2016, which envisages a deficit of HRK 7.4 billion or 2.2% of the projected GDP.

According to information available to Hina, the budget proposal to be presented at a government session tomorrow does not differ significantly from budgetary guidelines presented two weeks ago.

The total budget revenue is projected at close to HRK 115 billion, while the expenditure is planned to amount to HRK 122.4 billion.

The government plans an increase in tax revenues by 1.2% or by HRK 800 million.

Compared to 2015, budget revenues should grow by five billion kuna, including EU funds.

The budget deficit will amount to HRK 7.4 billion or 2.2% of GDP. When six extra-budgetary funds and local self-government units are added to that, the general government deficit rises to HRK 9.2 billion or 2.7% of GDP.

As for austerity measures, which are expected to save around 2.5 billion kuna, all items will be affected except for salaries and pensions.

According to unofficial sources, material outlays are to be cut by HRK 260 million, grants by 550 million, allowances by 300 million, benefits for citizens and households by 560 million, other outlays by 550 million, and outlays for non-financial property procurement by 280 million, of which a large portion refers to the Defence Ministry.

The budget for war veterans will not be reduced.

Grants in the transport sector are expected to be cut, while farming grants are not.

As for salaries, the budget does not envisage funds for the 6% pay rise demanded by trade unions, but rather only an annual rise of 0.5% per year of service.


(EUR 1 = HRK 7.6)

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