The Croatian Parliament today passed the state budget for the upcoming year with a majority vote, planning revenues of 113.7 billion kuna and expenditures of 124.5 billion kuna, resulting in a budget deficit of 10.9 billion kuna.
Eighty-three representatives of the ruling coalition voted in favor of the government’s budget proposal, while six opposition representatives voted against it, with an equal number abstaining.
According to the adopted budget, the budget deficit in 2013 will increase by nearly one billion kuna to 10.9 billion kuna, which amounts to 3.1 percent of GDP.
The budget for the next year anticipates GDP growth of 1.8 percent, and in 2014 and 2015, the government expects an acceleration of economic growth, forecasting a growth of 3 percent in 2014 and 3.5 percent in 2015.
The government projects that inflation next year, due to the effect of this year’s energy price increases, will remain significant at 3.5 percent, and in 2014 and 2015, it will be slightly above two percent.
In the Banski Dvori, they emphasize that the policy of development and fiscal consolidation guided them in drafting the budget, namely the battle for economic growth and a stronger GDP as the cornerstone that would justify the continuation of fiscal consolidation and austerity.
The budget vote was preceded by a heated debate during which the ruling majority rejected all opposition amendments.
Among those rejected was the one from the HDZ Club, which requested nearly one billion kuna more for the Ministry of Agriculture under the item “Direct Payments in Agriculture.”
The HDSSB amendment requesting 600 million kuna more for that ministry, specifically for subsidies to companies, farmers, and craftsmen outside the public sector, was also not passed.
After the explanation from the relevant minister Tihomir Jakovina that the allocated funds for that purpose are sufficient for 2013, Dinko Burić on behalf of the HDSSB stated that rejecting that amendment and reducing the budget for agriculture inflicts immeasurable damage to Croatian villages and agriculture, especially in Slavonia and Baranja.
– You do nothing, you just blindly listen and raise your hands. You are the wrong person in the wrong place – he told Minister Jakovina.
The ruling party rejected a series of HDZ amendments, and since HDZ representatives had previously demonstratively left the parliament, they did not comment on that rejection.
Thus, the amendment by Branko Bačić (HDZ) to increase the item for encouraging regular maritime passenger and fast boat lines by 35 million kuna was rejected, as well as the amendment from HDZ members Božidar Kalmeta, Branko Kutija, and Ana Lovrin to allocate 70 million kuna more for the construction of the ferry port Gaženica.
HDZ member Branko Bačić also requested 120 million kuna more for subsidies and state guarantees for housing loans.
The amendment by HDZ representative Darko Milinović, who requested as much as 2.7 billion kuna more for HZZO under the item ‘Hospital Health Care’, was also not passed.
– This is for the Guinness Book of Records ‘believe it or not’ – explained the government’s rejection by Health Minister Rajko Ostojić.
Several HDSSB amendments were also rejected, including one that requested half a billion kuna more for the construction of Corridor Vc from Osijek to the border with Hungary.
The parliamentary majority also rejected the amendment by Zoran Vinković (HDSSB), which requested 110 million kuna for the reconstruction of the road route Našice-Đakovo-Vinkovci.
