The government of Croatia recently presented its state budget for the next year to parliament, marking the eighth budget proposal in significantly changed geopolitical circumstances. Despite facing an energy and food crisis, as well as inflationary pressures, Prime Minister Andrej Plenković emphasized the importance of political stability in achieving strategic goals and dealing with crises.
The key priorities of the budget include capital investments in transport infrastructure, reconstruction, energy and education. The government aims to reduce public debt, maintain the budget deficit below three percent, and increase salaries and pensions. Funds have been allocated from the budget for various programs such as personal assistance, inclusive allowance, child allowance, free textbooks, school transport and meals, earthquake damage repair, public debt servicing costs, railway infrastructure, energy restoration and defense forces.
Despite these challenges, Croatia is expected to achieve positive economic prospects with a predicted GDP growth rate of 2.8% in the upcoming year. With inflation expected to slow down in the future years.