16th Position Paper of the Fiscal Policy Commission on the Draft Annual Report on the Execution of the State Budget of the Republic of Croatia for 2021
At its 12th (online) session held on 16 May 2022, the Fiscal Policy Commission (hereinafter: Commission) discussed the Draft Annual Report on the Execution of the State Budget of the Republic of Croatia for 2021 adopted by the Government of the Republic of Croatia (hereinafter: Government) at its 118th session held on 12 May 2022.
The Commission holds that fiscal policy in 2021 was appropriate, because it enabled strong fiscal changes in response to the COVID-19 crisis, and responsible, because it did not endanger mid-term fiscal sustainability. However, the Commission reiterates the need to implement decisive reforms in the healthcare and pension sector as well as in the domain of employee compensation as these areas are in fact the largest load on the state budget.