The budget for 2021 is a transitional phase towards a return to the economic and fiscal policy trajectory of before the corona crisis which was marked by a decreasing public debt to GDP ratio and a budget surplus, Prime Minister Andrej Plenkovic said at the start of a cabinet meeting on Thursday.

Speaking of the budget proposal for next year, Plenkovic announced further subsidies for the healthcare system, the enterprise sector, agriculture and social welfare, citing the financing of measures for shorter working time, job retention, post-earthquake reconstruction, the Krk LNG terminal project and support for local development projects.

The government has projected a GDP growth rate of 5% in 2021 and growth rates of 3.4% in 2022 and 3.1% in 2023.

Plenkovic said that the government also counted on EU funding, recalling that over €24 billion would be available to Croatia over the next seven to ten years.

Speaking of the revision of the 2020 budget, the prime minister said that this year’s budget deficit would be HRK 29.5 billion, or 8% of GDP, adding that figures for the third quarter indicated a slow economic recovery.

He mentioned a successful tourist season this year, much better than expected, saying that this was thanks to the prompt response to the coronavirus outbreak, the timely preparation of the season and the increased influx of EU funds.

(€1 = HRK 7.573235)