Zagreb - Opposition MPs warned during Wednesday's debate on the revised budget of cuts to funding for anti-graft efforts, environmental protection and social rights, while the ruling coalition praised the state of public finances, which it said was significantly better than in some major European countries.
"You are cutting funding for anti-corruption efforts by 97%, reducing the budgets of the Office for the Suppression of Corruption and Organised Crime (USKOK), the Ministry of Environmental Protection and the Environmental Protection Fund. The message to environmental criminals is clear: bury the waste, we abandoned the fight against corruption long ago, and leave citizens with the €55 million bill," SDP MP Mirela Ahmetović said.
She asked the finance minister why the money had not been redirected towards modern environmental monitoring and surveillance equipment.
"Don't worry about the budget, either for this year or the next. All the needs of all the institutions mentioned will be met," Finance Minister Tomislav Ćorić replied.
He added that the cuts in the revised budget were solely due to delays in the implementation of capital projects in certain areas.
Asked by Boris Lalovac (SDP) whether wholesale pharmaceutical suppliers would again threaten to suspend medicine deliveries this year over the state's outstanding debts, Ćorić said €120 million had been earmarked to ensure uninterrupted deliveries.
Arsen Bauk (SDP) asked when the Tax Administration had last audited the accounts of sports associations.
"There is a fan group, often mentioned these days, that has no budget problems. They travel to away games, go on trips, paint whatever needs painting, buy pyrotechnics and are very well funded, yet nobody knows where the money comes from," he said.
Ćorić said he did not have that information but could provide an answer later.
SDP MP Martina Vlašić Iljkić asked whether he considered the benefit payments for socially vulnerable people, older citizens, unemployed war veterans and families with children adequate. The minister said the amounts reflected the state of public finances while representing an improvement on the period when the SDP was in power.
HDZ MP Josip Ostrogović said the government had demonstrated its commitment to vulnerable groups through the inclusive allowance.
"An additional €185 million is earmarked in the revised budget. This is particularly important for people with disabilities and their families, who face additional care costs and expenses for everyday needs," he said.
The minister stressed that nobody entitled to the inclusive allowance would be denied it, adding that all eligible recipients would receive back payments dating from the day they submitted their applications.
HDZ MP Sanda Livia Maduna said Croatia did not face the same public debt problems as some other European and global economies, allowing it to borrow on more favourable terms.
"Countries such as France and Italy are now struggling with deficits and public debt. Their borrowing costs are currently 0.5 to 1 percentage point higher than Croatia's," Ćorić said, adding that Croatia had pursued responsible macroeconomic and fiscal policies since 2016.
The government aims to reduce the deficit to around 2% over the medium term and eliminate it entirely in the long run, he said.
Asked by Krešimir Čabaj (DOMiNO) when rising revenues would be accompanied by a lower deficit, Ćorić said Croatia needed to "continue strengthening its macroeconomic framework and investing in productivity, which will be the goal for the coming years."
Centre MP Marijana Puljak highlighted the state's high operating costs.
"I'm not talking about pensions and social benefits, but about some 10,000 unnecessary jobs that exist solely to provide employment for party loyalists. In addition, around 300 local government units provide no services at all," she said.
The minister said voters judged the efficiency of local government units in delivering public services and would reward or punish local administrations accordingly.
On local government financing, he described the current model as reasonable but called for greater accountability and more prudent spending of public funds. He ruled out exempting public investment projects from VAT, saying the matter was governed by EU directives.
SDP MP Sanja Radolović pointed to a €143 million increase in expenditure on energy-related subsidies and asked the minister whether Croatia's lack of an energy strategy and long-term investment in energy independence was due to incompetence, laziness or ignorance.
"If you knew anything about energy, I am certain this subject would never have crossed your mind, especially at a time when all of Europe, except Norway and Iceland, is suffering considerably from rising energy prices on global markets," Ćorić replied.
On agriculture, the minister said the revised budget increased funding for the sector by €128 million. He stressed agriculture's importance to the Croatian economy but cautioned that it might not be possible to meet every need in the sector.
He also announced that the government would seek to significantly strengthen rail transport over the next five to ten years, describing intermodal transport as the future of the transport system.