The Mayor of Zagreb, Tomislav Tomasevic, on Tuesday unveiled the city's 2022 budget of 15.12 billion kuna, which is 1.1 billion kuna higher than the consolidated budget for 2021.

The purpose of the budget is to stabilise finance, step up post-earthquake reconstruction, and achieve the goals for a greener and more equitable Zagreb, the mayor said at a press conference.

Of the total of 15.12 billion kuna, 4.93 billion will go towards budget beneficiaries, which is an increase of about 50 million kuna compared with the 2021 budget, while 10.19 million will go towards the city budget. Compared with the amended 2021 budget, the total budget for next year is 1.1 billion kuna higher because of investment in the post-earthquake reconstruction and debt repayments.

The city expects higher revenues next year because it expects 520 million kuna from the Solidarity Fund and 680 million kuna from sales of city-owned assets. It plans to sell its 350 million kuna stake in the Apis IT company as well as several small land plots and business premises, which are expected to bring in 200 million kuna.

Tax revenue is forecast to increase by 415 million kuna.

The budget provides for consolidation of city finance. A total of 965 million kuna will go towards debt repayments next year, which is about 700 million more than in 2021. A projected budget surplus of 300 million kuna will be used over the next four years to cover the accumulated debt.

Ordinary costs will be reduced by 7 percent by lowering the salaries of city administration staff and fees of city councillors as well as through lower costs for safeguarding city-owned properties and lower allocations for stay-at-home parents.

In 2022, the city plans to increase the amount for scholarships to 48 million kuna and invest 67 million kuna in the construction of four new kindergartens and 287 million kuna in the post-earthquake structural reconstruction of 13 schools and a student dorm.

(€1 = 7.5 kuna)