The government will discuss on Wednesday a report on the execution of the 2015 state budget and a report on the application of fiscal rules in 2015 which says that Croatia met the fiscal rule.
The general budget expenditures for the calculation of the fiscal rule were reduced by 3.6 percent in 2015, while the projected GDP, used for the last budget revision, recorded a year-on-year increase of 1.3%, with the nominal GDP increasing by 1.8% year on the year, the Finance Ministry says.
According to a provisional fiscal rule, the year-on-year increase of the general budget expenditures must not exceed the year-on-year growth of the projected GDP.
The 2015 budget execution report shows that revenues totalled HRK 109.8 billion, while expenditures totalled HRK 118.6 billion, with the deficit totalling HRK 8.8 billion, 2.6% of GDP. When one adds data on extra-budgetary beneficiaries and local government units, whose surplus totalled HRK 1.2 billion, the general budget deficit totalled HRK 7.2 billion, 2.3% of GDP, 1.5 percentage points less than the projected deficit.
However, the Finance Ministry notes that said deficit was calculated by the national methodology and that it differs from the European ESA 2010 statistical methodology, which puts the general government deficit at HRK 10.7 billion, 3.2% of GDP.
(EUR 1 = HRK 7.5)