Draft 2020 budget tabled with HRK 145.1 bn on revenue side and HRK 147.3 bn in expenses

Zagreb - The Croatian Government on Thursday sent to the Parliament a draft budget for 2020, envisaging HRK 145.1 billion on the revenue side and HRK 147.3 billion on the expenditure side.

Thus, the Government plans 6.7% higher revenues in comparison to the original 2019 budget, that is 5.4% more in comparison to the revised budget which was also tabled to the parliament today.

The expenses in the next year's budget are higher by five percent, that is by seven billion kuna, in comparison to this year.

As a result, the projected budget gap in 2020 is put at HRK 2.15 billion, accounting for 0.5% of Gross Domestic Product.

However, trends in extra-budgetary users' accounts and in local authorities' accounts as well as the consolidation of the necessary adjustments for next year makes way for the projection of a surplus of the consolidated general government at 0.2% of GDP, Finance Minister Zdravko Maric said.

The draft budget has been prepared with the assumption that Croatia's economy will grow 2.5% in 2020, Marić said.


Revised budget for 2019

The revision of the 2019 budget, which was sent today into parliamentary procedure, reads that total revenues would increase by HRK 1.6 billion (1.2%) to HRK 137.7 billion, whereas the expenditure side would be reduced by 1.3 billion from HRK 140.3 billion to 139 billion.

As regards the expenditure side, this reduction is mainly on the back of the savings on the interest rates, as 796.9 million kuna has been saved that way.

The biggest rise in the expenditure side has come from outlays for employees, and  849.6 million rise in the outlays for pensions.

The Government also set aside HRK 350 million for the first stage of the construction of the future LNG terminal on the island of Krk.

(€1 = HRK 7.452511)

Author: Hina