According to the Draft State Budget for 2024 which is based on the Draft Budgetary Plan for 2024, expectations and forecasts for 2024 suggest similar macroeconomic trends as in 2023, while continued growth of budget expenditure will result in a significant increase of the budgetary deficit in 2024. The Commission holds that if the foreseen favourable macroeconomic trends are achieved, medium-term fiscal sustainability will not deteriorate significantly; instead, further decrease of the relative share of public debt is foreseen. Although fiscal indicators will deteriorate in 2024 (provided expansionary fiscal policy in favourable conditions), a positive trend of the planned continued decrease of public debt-to-GDP ratio in the next period is underlined. Therefore, the Commission invites the Croatian Government to limit the adoption of fiscal measures with a permanent effect on expenditure and insist on those structural reforms and investments necessary t

o increase the potential growth rate. Since the macroeconomic perspective can change very quickly and bring about a deceleration of economic activity, the Commission underlines the need for responsible management of Croatian public finances in the upcoming medium-term period.

Pročitaj više