PM: Budget, public debt statistics positive

Prime Minister Andrej Plenkovic said on Wednesday that the latest figures from Eurostat and the Croatian Bureau of Statistics (DZS) on the budget and public debt were favourable, that the debt was expected to continue declining but that the impact of the government's guarantees for the Uljanik shipbuilding group on the financial situation remained to be seen.

According to Eurostat and DZS statistics, released on Monday, the general government surplus in 2017 was HRK 3.15 billion or 0.9% of GDP, which is the first surplus since DZS started keeping statistics on the general government surplus.

The latest statistics are better than the preliminary estimate, published in April, according to which the surplus was to be HRK 2.7 billion.

"This is one more proof that last year the government managed public finances responsibly and this confirms that despite all the challenges and the introduction of major tax breaks, which will continue, we managed to earn more than we spent," said the PM.

Eurostat and the DZS also said that at the end of 2017 Croatia's public debt amounted to HRK 283.3 billion, with the share of the debt in GDP dropping to 77.5%, its lowest level since 2012, when it stood at 69.4% of GDP.

That, the PM said, is also a very good result.

Meanwhile, it was announced on Tuesday that Croatia's public debt at the end of Q2 totalled HRK 284 billion, with the debt to GDP ratio dropping to 76.1%, the new lowest level since 2012.

"According to current projections, by the end of the year the debt to GDP ratio is expected to fall to below 75%, or 74.5%, but it yet remains to be seen what repercussions obligations arising from the activated guarantees for Uljanik will have for our financial situation and the budget," said Plenkovic.

Text: Hina



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