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Plenković Unveils Budget: 32.6 Billion Euros Allocated for Wage and Pension Growth


Nov 21, 2023

Prime Minister Andrej Plenković presented the State Budget for the next year to members of the Parliament, emphasizing the need to protect vulnerable citizens and secure public finances in the midst of energy and food crises and inflationary pressures. He highlighted the aid packages that preserved social cohesion, prevented the rise in prices of essential goods, and ensured that essential services and institutions functioned normally. Political stability, macroeconomic, and financial stability were key to dealing with crises, which was evident in the rise of Croatia’s credit rating by four notches.

The government secured 25 billion euros in the European context and utilized funds from the Reconstruction Solidarity Fund. Capital investments in transport infrastructure were highlighted as proof of implementing a policy of equal opportunities. The Prime Minister outlined the country’s expected GDP growth of 2.8 percent and responsible management of public finances, with a minimal deficit or surplus expected at the year’s end.

Specific priorities for the next year included continued funding for reconstruction, energy, and education, following EU Council recommendations and ongoing reforms to reduce public debt. The State Budget for the next year includes planned revenues of 28.5 billion euros and expenditures at 32.6 billion euros, with a focus on increasing salaries and pensions, implementing measures to help citizens and the economy, and supporting reform processes.

The Prime Minister emphasized the government’s commitment to increasing child allowances, repairing earthquake damage, financing public debt servicing costs, and investing in various sectors such as transportation, healthcare, defense, culture, and tourism. He also reflected on Croatia’s forecasted GDP growth, predicting 2.8 percent growth in the next year, with inflation expected to slow down in the following years.

By Editor

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