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Zagreb - The latest draft of the 2022 budget revision proves that also in challenging times the government is capable of managing public finances, Finance Minister Marko Primorac told the Croatian parliament on Thursday.
"The draft revision is good and shows that in these challenging circumstances, the government knows how to manage public finances. Taking into consideration all the circumstances and the need to help citizens and companies, we could not have drawn up a better budget revision," Primorac told lawmakers while outlining the 2022 budget revision draft.
On 19 October, the government sent the parliament the draft revision under which the total revenue will increase by HRK 758.2 million to HRK 171.8 billion while expenses will stay at HRK 184.7 billion, as a result of which the budget deficit will amount to HRK 12.9 billion or 2.7% of GDP.
The general government deficit (according to ESA 2010 methodology) will amount to HRK 7.1 billion or 1.5% of GDP.
The revision includes the funding of the government's autumn energy relief scheme as well as funds for payment under an arbitration award of the International Centre for Settlement of Investment Disputes in the INA-MOL case in the amount of HRK 1.8 billion.
The revision also takes into consideration an estimated HRK 600 million necessary for an increase in the base pay for the public sector's employees and for Christmas and other bonuses, according to Primorac's explanation.
The minister also informed the Sabor that he expected economic growth to decelerate to +0.7% in 2023 after this year's rise of 5.7%. Also, the inflation rate is expected to slow down from this year's rate of 10.4% to 5.7% in 2023.
(€1 = HRK 7.5)