LAWS TO WATCH: Budget Act

lalovac27 October 2014, LPJ Croatia Issue 106

According to the proposed amendments, the act expands the definition of budgetary users to extra-budgetary funds, companies and other legal entities in which the state or the local (regional) government has a decisive impact on management, which is in accordance with the rules of EU statistical methodologies classified in the general government sector, but are not direct budgetary users.

The act cancels the development of a Government programmes strategy. In accordance with obligations from the Excessive deficit procedure (EDP) and the European Semester, the National reform programme and Convergence programme will be the key strategic documents defining the macroeconomic and fiscal framework for the current and next three years, in the budget preparation process.

The amendments deletes the provision that stipulates that the share of foreign debt can not be more than 60% of GDP. At the proposal of the Minister of Finance and at the request of the debtor and with the opinion of the competent authority, the government may approve or defer payment of debt instalments, or sell, cancel or partially cancel, if the claim thereby significantly improves the debtor’s capability to return the debt who otherwise would not be able to return the full debt.

Proposed by: Ministry of Finance

Note: Public debate is open until 3 November 2014

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