Sarajevo, Nov. 30 (BNA): Croatia, which will enter the eurozone on Jan. 1, passed its first budget in euros on Tuesday, targeting a public deficit of 2.3% of GDP based on projections of economic growth of 0.7%. for the year 2023.
The budget was passed by a vote of 77 to 50 in the 151-seat parliament.
“This is Croatia’s first budget denominated in euros,” Finance Minister Marko Primorac said while presenting the budget plans. Reuters reported.
The flags of the European Union and Croatia are seen in downtown Zagreb on July 1, 2013. REUTERS/Antonio Bronik
SARAJEVO (Reuters) – Croatia, which will enter the eurozone on Jan. 1, approved its first budget in euros on Tuesday, targeting a public deficit of 2.3 percent of gross domestic product based on forecasts for economic growth of 0.7 percent. for the year 2023.
The budget was passed by a vote of 77 to 50 in the 151-seat parliament.
“This is Croatia’s first budget denominated in euros,” Finance Minister Marko Primorac said while presenting the budget plans.
“The introduction of the euro will strengthen our economy, it will be a pillar of stability, it will make us more resistant to external shocks and crises and it will contribute to improving the investment climate,” Primorac told lawmakers.
In July, EU finance ministers formally approved Croatia – a member state of the EU since 2013 – to become the 20th member of the single euro currency at the beginning of 2023, setting the conversion rate for one euro entry to 7.53450 kuna.
Prime Minister Andrej Plenkovic said the budget is aimed at maintaining growth and maintaining social stability.
Budget revenues are expected to total €24.9 billion ($25.86 billion), up 9% from this year and mainly supported by direct and indirect taxes expected at €13.3 billion.
Expenditure was set at €26.7 billion, €2.1 billion more than this year, due to an increase in the government’s social and development programme.
Projected economic growth is expected to drop by 5.7% this year to 0.7% in 2023, while it is targeted to reduce public debt to 67.9% of GDP from 70.2% this year. Inflation, expected to be 10.4% this year, is expected to decline to 5.7% in 2023.
Opposition deputies proposed 430 amendments to the budget, but the government accepted only 10.
($1 = 0.9630 euros)
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