Croatian Government Proposes 2016 State Budget
On 10 March, the government adopted and proposed the 2016 State Budget to the Sabor for ratification. It envisages €15.1 billion in revenues, a 4.9% increase compared to the 2015 budget, and €16.1 billion in state expenditures, which is €501.6 million more than last year. The total budget deficit is projected at 2.7% of GDP (i.e. €1.21 billion), including extra-budgetary debts and local government deficits; this is the lowest projected deficit since the start of the economic recession in 2008. The Sabor is supposed to vote on the new budget on Friday, 18 March.
Government officials expressed belief that the budget is balanced and the best possible under the current circumstances. The government also believes that it would bring the expanding public debt under control, which was 86.9% of GDP at the end of 2015.
The budget proposal is based on a projected 2% increase in GDP growth; inflation is forecast to be approximately 0.1%. The budget itself contains 18,245 budgetary positions, divided into 53 sections and 203 chapters…