Parliament Adopts State Budget for 2021 by Majority Vote

The Croatian Parliament on Wednesday adopted the state budget for the next year with projections for 2022 and 2023 by a majority vote. Dissatisfied that only a small part of its amendments was accepted, the opposition boycotted the voting on them, returning to vote on the budget itself.  

The most important financial document of the state received the necessary 76 votes. All representatives of the parliamentary majority voted for it, while 49 representatives voted against. The Parliament also gave consent to the financial plans of off-budget users. 

With the adopted budget, revenues are projected at 147.3 billion kuna, and expenditures at 157.9 billion kuna. In preparing the budget for the next year, the government projected economic growth of five percent, 3.4 percent in 2022, and 3.1 percent in 2023.

After this year’s 29.5 billion kuna (eight percent of GDP), the general government budget deficit, according to the ESA 2010 methodology, is expected to amount to 11.56 billion kuna or 2.9 percent of GDP next year.

Further reduction of the general government budget deficit is planned for the next two years – to 2.1 and 1.6 percent, respectively.

Prime Minister Andrej Plenković previously emphasized that the budget for 2021 can be called a budget that ensures economic recovery for Croatia during the corona crisis.

– Our goal in this specific budget is to protect the most vulnerable groups and encourage our entrepreneurs. We want to ensure economic recovery, protect jobs, strengthen the healthcare system, and enhance Croatia’s resilience to economic crises – emphasized the Prime Minister.

A significant impact, he noted, will also come from increased withdrawal of funds from European funds, and a crucial part of the budget is also the funds for the reconstruction of Zagreb after the earthquake (2.4 billion kuna), as well as compensatory measures for local governments after the new tax reform.

From about 300 amendments, five were accepted, opposition boycott

Out of 331 submitted amendments, the government accepted five – two from Vesna Nađ (SDP), one from the IDS Club, one from independent Marijana Petir, and one from HDZ’s Žarko Tušek, which was confirmed by the Parliament through voting.

These amendments provide an additional 450 thousand kuna for the prevention of violence among youth, half a million kuna for shelters and counseling centers for victims of domestic violence, and 10 million kuna for the reconstruction of the Poreč police station building. There is also one and a half million kuna for helping persecuted Christians, i.e., for scholarships for young people who are not allowed to be educated simply because they are Christians, and two million kuna for project documentation for phase 1 of the modernization and electrification of the railway line Zabok-Krapina-state border with Slovenia.

In response to the rejection of almost all opposition amendments, and the fact that during the day and a half it took to discuss them, there were no representatives of the majority in the Parliament, the parliamentary opposition responded on Wednesday by boycotting the voting on the amendments. 

While the discussion on our amendments lasted a day and a half, almost none of you were present in the Parliament, and now at the voting, we will not be there, the leaders of the SDP, DP, Most, Croatian Sovereignists, and ZLB clubs told their colleagues from the ruling majority, and then left the Parliament.

They returned just before the voting on the budget, and Anka Mrak-Taritaš (Glas) requested a break for further consultations. 

– We appreciate that the budget is an extremely important political document, and as it is made without accepting any opposition amendment, the budget is conservative, does not make a breakthrough, and does not enable the future of Croatia, said the representative, and then requested a break for further consultations. 

– I must admit that I do not understand you, altogether, you left the Parliament in very rude words, now you are returning, asking for a break for some great reflection, but to show my breadth, I will grant you what you are asking for – replied the President of the Parliament Gordan Jandroković to the representative.   

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