Croatia to rebalance 2014 budget by end-March to meet EC recommendations

By bne IntelliNews December 13, 2013

Croatian finance minister Slavko Linic said on Dec 12 the government will by end-2013 send the European Commission the set of measures for reducing the 2014 fiscal deficit and will revise by end-March the 2014 budget bill - as a response to the excessive deficit procedure (EDP) the EC is launching against the country, business portal SEEbiz reported.

Linic told a press conference after the cabinet meeting that by adopting its investment plan of 2014 on Thursday, Dec 12, Croatia already sent a message to the EC about its intention to reduce the deficit. Under the plan, the country hopes to attract HRK 73.1bn (EUR 9.6bn) of investments next year, up from planned HRK 66.6bn in 2013, which will lead to mild growth of consumption.

Linic also said that one of the measures to reduce the budget deficit would be rationalising the health and education sectors, which however will not be related with wages and pensions cuts in that systems.

Earlier in December, the parliament endorsed next year's budget bill with planned deficit of HRK 17.5bn, or 5.0% of the projected GDP. The EC, however, recommended as part of the excessive deficit procedure that Croatia should target reducing next year's gap to 4.6% of GDP, which is an annual improvement of the structural balance of 0.5% of GDP in 2014.

Related Articles

Croatia reportedly receives just one bid to lease capacity at planned LNG terminal

LNG Hrvatska has reportedly received just one binding offer to lease capacity at the planned planned liquefied natural gas (LNG) terminal on the Croatian island of Krk, unnamed sources ... more

London court to consider extradition of Agrokor founder

The owner of Croatia’s heavily indebted food and retail giant Agrokor, Ivica Todoric, will appear in a London court on April 10 in connection with Croatia’s extradition request, Total Croatia ... more

Croatia greenlights €1.8bn debt restructuring of road management companies

The Croatian government decided on March 29 to offer state guarantees for loans worth €1.8bn that road management firms will take out to refinance their debt, and announced further financial ... more

Dismiss