The Croatian government introduced a 2012 budget proposal on Monday, projecting expenditures at HRK 118.84 billion (HRK 3.4 billion less than last year) and revenues at HRK 108.95 billion (1.4 per cent more than in 2011).
"This budget is realistic. It is geared towards development and protecting those hit hardest by the crisis," Prime Minister Zoran Milanovic said at a Cabinet meeting. "We believe these measures will stimulate growth and development in Croatia," he added.
The budget deficit is planned at HRK 9.9 billion, or 2.8% of GDP.
The government cut expenditure on public-sector employees by HRK 1.95 billion. Material expenditure was reduced by HRK 317 million and expenditure on subsidies was cut by HRK 1.2 billion (subsidies to agriculture were reduced by 817 million and the Croatian Rail (HZ) company by 543 million).
The government projected this year's economic growth at 0.8% and inflation at 2.4%.
