Croatia adopts first budget in euros

Croatia, which is preparing to join the eurozone, adopts a budget in euros for the first time, Reuters reported on November 30.

Flag of Croatia

Flag of Croatia

Olga Shklyarova © IA REGNUM

Croatia, which will join the eurozone on January 1, adopted its first euro budget on Tuesday, targeting a total deficit of 2.3% of gross domestic product based on an economic growth forecast of 0.7% for 2023.

The budget was adopted by 77 votes in favor and 50 against in the 151-seat parliament.

Minister of Finance Marko Primoracpresenting the budget plans, stressed that the adopted budget is the first in Croatia denominated in euros.

“The introduction of the euro will strengthen our economy, it will be an anchor of stability, it will make us more resilient and protected from external shocks and crises and will help improve the investment climate”Primorac told Croatian legislators.

In July, European Union finance ministers formally approved that Croatia – an EU member state since 2013 – will become the 20th member of the single euro currency in early 2023, setting the one-euro entry conversion rate at HRK 7.53,450. more

Prime Minister Andrey Plenkovich stated that the budget is aimed at mitigating the consequences of the economic crisis caused by the situation around Ukraine, maintaining economic growth and maintaining social stability.

The total volume of budget revenues is projected at the level 24.9 billion ($25.86 billion), up 9% from this year, and mainly through direct and indirect taxes, projected at €13.3 billion.

Spending is set at €26.7bn, up €2.1bn from this year, due to increased government social and development programs.

Economic growth of 5.7% expected this year is projected to fall to 0.7% in 2023, while public debt is scheduled to be cut to 67.9% of GDP from 70.2% this year. Inflation, which is projected at 10.4% this year, is expected to fall to 5.7% in 2023.

Opposition legislators proposed 430 amendments to the budget, but the government accepted only 10 of them.

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