The government's 2021 budget revision was adopted by Croatian lawmakers on Friday, with 77 MPs voting in favor and 50 against in the 151-seat Parliament.

Compared to the original 2021 budget, projected revenues now increased by 3.3 billion kuna (€439m) to 153.6 billion kuna (€20.4bn), and expenditures increased by 6 billion kuna (€799m) to 173.3 billion kuna (€23.1bn). The budget deficit is projected at 19.7 billion kuna (€2.6bn), or 4.7 percent of the country’s GDP, and the general government deficit is forecast at 18.9 billion kuna (€2.5bn), or 4.5 percent of GDP.

Inflation is projected at 2.4 percent, unemployment rate at 7.5 percent, and 2021 GDP growth at 9.0 percent. The biggest rise in budgetary outlays, of 7.05 billion kuna (€939m), refers to defence spending and the procurement of fighter jets. In May, Croatia had agreed to purchase 12 French-made Rafale fighter jets, in a deal worth €999 million in total. The health ministry’s budget was also increased by an additional 1.6 billion kuna (€213m).

Out of some 30 amendments to the draft revision put forward by MPs, the HDZ-led government accepted only one, put forward by MP Miro Totgergeli (HDZ). The amendment is set to secure slightly more than 2 million kuna (€266,000) for equipping the state-run hospital in the town of Bjelovar.

(€1 = HRK 7.511616)