The annual report on the execution of the state budget for 2010 received the support of the ruling Croatian Democratic Union (HDZ) party, while the Opposition warned that last year the government had managed to please only the budget beneficiaries, neglecting the economy and failing to ensure even regional development.
Presenting the report, Finance Minister Martina Dalic said that budget revenues amounted to HRK 107.7 billion, or 2.5% less than in 2009. She added that tax revenues rose by 2% to HRK 61.8 billion, mostly from VAT (HRK 37.7 billion, or 1.7% more than in 2009).
Expenditure totalled HRK 121.9 billion, an increase of HRK 1.7 billion from 2009. Most of the expenditure went towards pensions (HRK 34.8 billion) and the health and social welfare sector (HRK 24 billion).
The budget deficit was HRK 14 billion, or 4.2% of GDP, Dalic said.
Ivan Suker of the HDZ said that thanks to the monetary and fiscal policy Croatia was now definitely emerging from the recession, and without anyone's assistance.
Unlike the ruling party, the Opposition slammed the report, highlighting the macroeconomic and regional unacceptability of last year's budget.
"The government didn't achieve a single goal relating to macroeconomic stability, but thanks to the high deficit it only managed to satisfy the obligations towards budget beneficiaries," said Slavko Linic of the Social Democratic Party (SDP).
"That budget completely stopped the economy and only continued disastrous trends from 2009," Linic said, adding that the number of the unemployed and pensioners was growing while the number of people working and paying their contributions was declining.
Dinko Buric of the regional HDSSB party said that the report clearly showed the government's total neglect of the Slavonia and Baranja region.
"Not a single government guarantee was issued for agriculture, the strategic economic branch of Slavonia and Baranja," he said.
