Parliament Adopts 2017 State Budget

Total Croatia News

The first budget of government led by Prime Minister Andrej Plenković was supported by 86 MPs.

After rejecting all 132 amendments, Parliament on Thursday adopted the state budget for 2017, together with budget projections for 2018 and 2019, reports Novi List on December 15, 2016.

The debate lasted whole day, but in the end the first budget proposed by the government led by Prime Minister Andrej Plenković was supported by 86 MPs, 37 MPs voted against, while four abstained. The majority needed for the budget to be adopted was 76 MPs.

Deputy Prime Minister and Economy Minister Martina Dalić spoke about amendments proposed mostly by opposition MPs, saying that they would increase total government spending by more than 9 billion kuna, which was the reason why the government rejected them all.

The majority of amendments was submitted by SDP and HNS, while MPs from ruling parties proposed three amendments. The most financially substantial amendments where the ones proposed by Ivan Lovrinović (Let’s Change Croatia party; 10 billion kuna), and Predrag Matić (SDP; 5 billion kuna).

Budget revenues for 2017 are planned in the amount of 121.6 billion kuna, expenditures in the amount of 128.4 billion kuna, with the deficit of 6.8 billion kuna, or 1.9 percent of GDP. The budget is based on projections of economic growth in the next year of 3.2 percent, as well as on the effects of the tax reform whose implementation will begin in January.

Tax revenues are projected to amount to 72.8 billion kuna, with the most of that amount coming from the value-added tax, whose revenues are projected to grow by 4 percent to 46.2 billion kuna.

Budget expenditures should amount to 128.4 billion kuna, which is 6.7 billion kuna or 5.48 percent more than in this year’s budget. The largest item in spending are compensations to citizens and households, in the amount of 46.1 billion kuna. Expenditure on pensions will grow by 1.6 percent or nearly 600 million kuna. Maternity benefits will grow by about 150 million kuna, which is similar to the growth of costs related to the rights of Croatian war veterans. Spending on public sector employees in the next year should amount to 26.4 billion kuna, which is 702 million kuna more than this year.

Thursday marked the end of the second session of Parliament and the last day of parliamentary meetings for this year. Unless there is a need for an extraordinary session to be called, the third regular session will begin in the second half of January. “Hardworking” MPs will use the next 30 days to rest and gather strength for new parliamentary achievements which undoubtedly await us in the next year.


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