Government raises budgetary expenditures for 2026 by €2.1 billion

At Friday's cabinet session government adopted a decision on the Budgetary Framework for the 2026-2028 period, according to which expenditures in the next year will increase by €2.1 billion on an annual level to almost €31 billion.

Speaking at today’s cabinet session Prime Minister Andrej Plenković said that the increase in budgetary expenditures is due to government's measures aimed at improving the living standards of citizens and strengthen social security, as well as continued investment into infrastructure.

“The new budget framework ensures that over the next three years we can finance measures that will provide for a better quality of life for our citizens, while also addressing the main strategic directions of Croatia's development in accordance with the national development strategy and the government's program. With these kinds of budget limits and thanks to the government's policies, Croatia continues its responsible management of public finances. This has enabled us to maintain a budget deficit of a maximum of three percent and to reduce the share of public debt in GDP. It has also enabled the growth of Croatia's credit rating, and generally, in a very well-connected manner, the growth of budget expenditures, in line with GDP growth,” Plenković said.

Also at today's cabinet session, government raised excise duties on tobacco products. According to the decision, which will take effect on July 1st, a pack of cigarettes will cost twenty cents more. Government also adopted amendments to the Mandatory Health Insurance Act, which - among other things - increases sick leave benefits for childcare.

Source: HRT