Plenković: The budget for 2026 is socially sustainable and developing

Croatian parliament debated the proposed state budget for next year. The government is forecasting revenues of 35.7 billion euros and expenditures of almost 40 billion. The expected economic growth next year is 2.7 percent. The opposition criticized the budget, and Prime Minister Plenković responded that it is social, sustainable and developmental. 

Planned revenues are 2.7 billion euros higher than the plan of the "rebalanced" budget for this year, while expenditures are 3 billion euros higher. "We are directing the increased expenditures mostly towards improving the quality of life of citizens, the lives of the most vulnerable - especially people with disabilities and pensioners," said Prime Minister Andrej Plenković.

“For pensions in the 2026 budget, 10 billion, 200 million euros have been foreseen. This is a billion euros more than it was this year. Higher expenditures are directed at further wage growth. For wages of those employed we have foreseen 8.8 billion euros. For social benefits and the needy, we will allocate 1 billion, 340 million euros,” said the Prime Minister.

804 million euros will be invested in demographic revitalization. Increased budget expenditures are accompanied by revenue growth.

“The foundations for increased budgetary revenues are the continuous increase of activities by companies and tax revenues, employment growth, growth of industrial production exports, another record tourist season, and successful use of European funds,” added Plenković.

Satisfaction with the Maastricht criteria will also characterize the budget in the coming year, noted Finance Minister Marko Primorac.

“This includes maintaining the deficit below the level of 3 percent and lowering the portion of public debt within the GDP,” said Primorac.

“We expect inflation to continue to decrease in the coming period,” said the Prime Minister, “in 2026 it is projected at 2.8 percent.”

“The reason why it is at a higher level than what is acceptable, is due to the actions of local actors and individuals in the chain of defining prices, despite the fact that the government helped them overcome the crisis,” he noted.

The budget is social - it protects the standard of citizens, believes the Prime Minister, sustainable because it shows responsibility towards public finances in the demanding and uncertain circumstances we are facing. It is also developmental because it ensures investments that enable us to be more competitive, productive, but also resilient to crises.

Source: HRT