Government Unveils 32.6 Billion Euro Budget Focused on Wage and Pension Increases

Croatia’s Prime Minister Andrej Plenković has recently unveiled the country’s State Budget for the upcoming year to members of Parliament. This is the eighth budget proposed under significantly altered geopolitical circumstances, and the main priorities remain safeguarding vulnerable citizens, ensuring financial stability, and continuing to invest in Croatia’s development.

The nation is currently facing an energy and food crisis, as well as inflationary pressures, and the government has taken measures to maintain social cohesion, prevent price increases, and ensure that essential institutions function normally. The Prime Minister emphasized the importance of political stability in achieving strategic goals and managing crises. He highlighted the government’s efforts in maintaining macroeconomic and financial stability, improving the country’s credit rating, and securing 25 billion euros from the European Union.

Key priorities for next year’s budget include capital investments in transport infrastructure, reconstruction, energy, and education. The government aims to reduce public debt, keep a budget deficit below three percent, increase salaries and pensions, and allocate funds for various programs such as child allowance, free textbooks in schools, earthquake damage repair costs, public debt servicing costs, railway infrastructure restoration costs