The Croatian parliament on Tuesday by a majority vote adopted the state budget for next year which projects HRK 113.7 billion in revenue and HRK 124.5 billion in expenditure and a budget deficit of HRK 10.9 billion.
The deficit will grow by almost HRK 1 billion to HRK 10.9 billion, equalling 3.1% of GDP, which the government projects to grow 1.8% next year. Economic growth is expected to pick up to 3% in 2014 and to 3.5% in 2015. The government foresees that inflation next year could remain at about 3.5% due to the higher price of energy sources.
The budget was passed by 83 MPs from the ruling coalition voting in favour, while six opposition MPs voted against and six abstained.
Cabinet had explained that the budget was planned based on development and fiscal consolidation aimed at economic growth and a stronger GDP as the grounds for continuing fiscal consolidation and austerity.
The adoption of the budget was preceded by a heated debate as the ruling majority rejected all of the 51 amendments put forward by opposition parties - HDZ (34), HDSSB (16) and SDSS (1). The HDZ MPs walked out of the chamber in protest before their amendments were rejected.
