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Croatia

Croatia: Decrease in the share of public debt in GDP this year

Croatian Finance Minister Zdravko Maric said today that public debt would be reduced by the end of the year.

“The decline in the share of public debt in GDP this year, in terms of government and fiscal policy, is certainly something we want to emphasize and this is a clear message to businessmen and entrepreneurs, all of us in Croatia, but also to the community. international “, he said. Marić stressed that this reduction puts Croatia back on track before the start of the corona crisis.

The inflation projection for this year will continue to remain below three percent, despite the acceleration of inflation in the second half of the year. “But we take inflation very seriously, not only because of the Maastricht criteria, but above all because of the standards of our citizens,” Marić said.

Answering questions from journalists on the sidelines of the Leader Invest conference, Maric confirmed that this year’s budget rebalance for next year and next year’s budget will be presented at the Government session on Thursday, and that they may be in procedure in the Croatian Parliament next week. .

When it comes to rebalancing, it will predict higher-than-expected economic growth.

“We are finalizing macroeconomic projections, according to the latest data we are going over eight percent, which I think is a very, very good result, given that Croatia will reach the level of GDP before the recession in less than two years. “, Said Marić.

This growth rate, higher than eight percent, he explained, had and will have consequences on budget revenues by the end of the year, which will therefore be “adjusted a little more” in the rebalancing.

But the less good news is that the spending side is growing more than the revenue side. As the most important points of this increase, Minister Maric listed the indexation of pensions in the second half of the year, which due to inflation was slightly above expectations, higher expenditures than originally planned for measures to preserve jobs , as well as higher costs due to previously agreed salary increases in the state and public service.

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