If we take account all of the costs caused by Covid-19, we have already reached 34 billion kuna (€4.5 billion), Finance Minister Zdravko Maric said in parliament after presenting the new 2021 budget revision to lawmakers on Wednesday.

Nominally, the greatest amount was spent on job-keeping measures (subsidizing salaries to preserve jobs), and when these are paid out in May and June, the amount fspent for that purpose will total 12 billion kuna (€1.6 billion), Maric said. The budget revision, he added, is not primarily related to Covid-19 but to the health sector’s debts.

At the end of February, hospitals alone had 4.7 billion kuna (€630 million) in liabilities.

MP Anka Mrak-Taritas (Glas) “underscored that the coronavirus crisis accentuated the problems in healthcare,” state agency Hina reported. Maric “admitted that a comprehensive reform was necessary with emphasis on the expenditure side in the health sector,” Hina said.

Wage increases are real

Maric rejected claims by Social Democratic Party (SDP) MP Zeljko Pavic that the wage increase in public services was merely nominal. “They are real, and could not be any more real,” Maric retorted, noting that the base wage in state and public services five years ago amounted to 5,108 kuna (€682) and is now at 6,044 kuna (€807).

“Wages have increased by 1,200 kuna net, which says that we are managing well in this challenging time of the Covid crisis,” Croatian Democratic Union (HDZ) MP Ivan Celic added.

MP Sinisa Hajdas-Doncic (SDP) warned that public debt had increased by 54 billion kuna (€7.2 billion) and that inflation was “crawling its way into Croatia.” MP Damir Bakic and MP Vili Matula (Green-Left Bloc) were interested in how much money has been set aside for reconstruction in the revised budget.

“The dynamics of preparations and procedures for the reconstruction of private and public buildings will dictate the need for financing and we will plan budget allocations accordingly,” said Maric, adding that when everything is summed up, the damage from the Zagreb and Petrinja earthquakes amounts to €18 billion.

Maric underscored that the budget deficit of 17.1 billion kuna (€2.3 billion) would not hamper the process of joining the euro zone.

(€1 = 7.49 kuna)