Gov't adopts 2017 budget guidelines

The Croatian government on Monday adopted guidelines for next year's budget with revenues set at HRK 119.6 billion and expenditures at HRK 126.5 billion, a budget gap of 1.6% of GDP and growth of 3.2%.

"These guidelines provide a framework for our economic and fiscal policies in the next three years," Prime Minister Andrej Plenkovic said at the beginning of a cabinet meeting on Monday.

The 2017 budget was determined based on the projected growth of 3.2% with the aim of keeping the general government deficit at 1.6% of GDP.

The revenues, projected at HRK 119.6 billion, are 2.8% higher than those projected for the 2016 revised budget, and the expenditures, forecast at HRK 126.5 billion, are 4.7 billion higher than in the 2016 budget.

Plenkovic said that the revenues side focused on keeping fiscal sustainability while at the same time boosting growth.

"The focus is on the implementation of our social and demographic policies as well as on the system of national and homeland security and on the entitlements of Croatian war veterans," Plenkovic said.

The Defence Ministry budget will increase to 1.23% of GDP, and HRK 1.3 billion will be allocated to compensate local self-government units, the premier said.

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