State budget

Government sends to parliament draft budget for 2011

15.11.2010 u 11:58

Bionic
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The Croatian government on Monday sent to parliament for consideration a draft budget for 2011 which keeps government spending at this year's level of around HRK 122 billion.

The central government deficit will amount to 4.3 percent of GDP.

The 2011 budget was drawn up on the basis of a projection of economic growth of 1.5 percent.

"The 2011 budget, along with the bill on fiscal accountability to be put forward by the end of the week, is the beginning of consolidation of public finances in the post-crisis period," Prime Minister Jadranka Kosor said.

The frozen government spending in 2011 will include two billion kuna for Croatia's EU accession process, an extra one million kuna for the payment of interest, an increase in funds for the payment of pensions of HRK 163 million, and funds for parliamentary elections, a referendum on EU accession and a census, the PM said.

"With this budget we want to tell Croatian citizens that they will receive their salaries, pensions, social benefits, everything that is paid from the budget, and that Croatia will keep servicing its debts regularly," Finance Minister Ivan Suker said.

The government also sent to parliament a bill putting on hold the adjustment of pensions to salaries and living costs in 2011.