19th Position Paper of the Fiscal Policy Commission on the Draft Amendments to the State Budget of the Republic of Croatia and the Financial Plans of Extra-Budgetary Users for 2022
At its 15th session held on 24 October 2022, the Fiscal Policy Commission (hereinafter: the Commission) examined the Draft Amendments to the State Budget of the Republic of Croatia and the Financial Plans of Extra-Budgetary Users for 2022 adopted by the Government of the Republic of Croatia on 19th October 2022 at its 159th session.
The Draft Amendments to the State Budget for 2022 foresee a decrease in the deficit of the general government budget and of public debt measured according to the share in the GDP in 2022. Fiscal policy in 2022 was largely marked by the unexpectedly high increase in tax revenue due to the strong real and nominal GDP growth and the effect of inflation, as well as due to the measures for alleviating the consequences of increasin
g energy prices. The Commission agrees with these Draft Amendments and highlights the need to continuously monitor the position of the Republic of Croatia in order to facilitate the adjustment of fiscal policy in uncertain and volatile circumstances and ensure continuity and responsibility which guarantee long-term sustainability of Croatian public finances. The Commission underlines that it is necessary to constantly bear in mind the consolidation of public finances, and that most of the available funds, especially those from European sources, must be planned more realistically and used more efficiently and directed as much as possible into activities which will preserve and support economic growth. As many times before, it also highlights the need for improved expenditure planning and control, and calls for structural reforms. Due to the possibility of realization of a number of (global) negative risks in the upcoming period, it is extremely important to manage Croatian public finances wisely.