Finance Minister Zdravko Maric said on Thursday everyone was a budgetary loser in the present circumstances and estimated that Croatia would not return to the pre-crisis level of economic activity before the end of 2022.

“In circumstances like these, we are all losers one way or another. We still have an economic downturn and should all do our best so that we get back on the track of recovery as soon as possible and reach the pre-crisis level as soon as possible,” he told the press when asked who would gain and who lose in the 2021 state budget.

According to government expectations and macroeconomic projections, the return to the pre-crisis level will not happen before the end of 2022 and, for some activities, 2023, said Maric.

From today’s perspective, the period ahead is far better than what we had with the previous crisis, but we have to make it happen, he said.

“I can’t agree with the opposition’s assessments that the government is looking at the budget through rose-coloured glasses and that several revisions can be expected next year. This budget is based on realistic foundations. What if there are scenarios that are practically impossible to predict? We tried to predict as many eventualities as possible based on what we know at the moment, yet things can get a little worse, but also better.”

Maric said there was no need to make things seem prettier. “There are no rose-coloured glasses. We project that this year GDP will fall 8% and I see nothing rose-coloured in that.”

He recalled that the government projected a 5% growth for next year which, he said, would depend on many factors, including vaccine developments, the epidemiological situation and how successful Croatia would be on the domestic front in terms of measures and activities.

He said the draft 2021 budget “should respond to all the challenges we are faced with.”

When the 2020 budget was being adopted, no one could have predicted COVID-19, so we revised it and reallocated funds to ensure HRK 8 billion for salaries in the public sector and healthcare, which is recording high additional expenses for ventilators and protective gear, Maric said.

He said the government was not staking everything on European funds but they, he added, could and should help.

Looking at the budget structure, taxpayers’ money dominates, but one should not ignore European funds as a possible substitute for some expenditures envisaged in general sources, Maric said.

He expects the opposition to submit many amendments to the draft 2021 budget.