# Croatia, heading to enter euro zone, adopts first budget in euros
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Croatia passes first euro budget amid economic projections
Meta Description: Croatia's first budget in euros aims to strengthen the economy, preserve stability, and boost investment climate amid the Ukrainian war-triggered economic
URL: https://financedigest.com/croatia-heading-to-enter-euro-zone-adopts-first-budget-in-euroshtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-30t023658z1lynxmpeiat03artroptp4croatia-eu-1736814794011-compressed.jpg)

SARAJEVO (Reuters) – Croatia, which will enter the euro zone on Jan. 1, passed its first budget in euros on Tuesday, targeting a general deficit of 2.3% of gross domestic product based on the projection of 0.7% economic growth for 2023.

The budget was adopted with 77 votes in favour and 50 against in the 151-seat parliament.

This is Croatia’s first budget denominated in the [euro,” Finance Minister Marko Primorac said as he presented the budgetary plans](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros").

The introduction of the [euro will strengthen our economy](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war"), it will be an anchor of stability, will make us more resistant and protected from external shocks and crises and will contribute to the improvement of investment climate,” Primorac told lawmakers.

In July, European Union [finance ministers](https://www.financedigest.com/scottish-finance-minister-kate-forbes-to-run-for-countrys-leadership.html "Scottish finance minister Kate Forbes to run for country’s leadership") formally approved Croatia – an EU member state since 2013 – becoming the 20th member of the euro common currency at the start of 2023, setting the conversion rate for entry at one euro to 7.53450 Croatian kuna.

[Prime Minister](https://www.financedigest.com/britains-queen-elizabeth-will-appoint-new-prime-minister-at-balmoral.html "Britain’s Queen Elizabeth will appoint new prime minister at Balmoral") Andrej Plenkovic said the budget aims to cushion the effects of the Ukrainian war-triggered economic crisis, maintain growth and preserve social stability.

The total budget revenue is forecast at 24.9 billion euros ($25.86 billion), up 9% from this year and fuelled primarily by direct and indirect taxes [projected at 13.3 billion euros](https://www.financedigest.com/amazon-grants-1-5-million-euros-to-dutch-seaweed-farm-project.html "Amazon grants 1.5 million euros to Dutch seaweed farm project").

Expenditures are set at 26.7 [billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros"), up 2.1 billion euros from this year, due to an increase in government social and development programmes.

Economic growth of 5.7% expected this year is forecast to drop to 0.7% in 2023, while public debt is targeted to be [cut to 67.9% of GDP from 70.2% this year](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year"). Inflation, which is [projected at 10.4% this year](https://www.financedigest.com/synechron-partners-with-r3-in-one-of-the-largest-distributed-ledger-consortium-projects-of-the-year.html "Synechron Partners with R3 in One of the Largest Distributed Ledger Consortium Projects of the Year"), is seen dropping to 5.7% in 2023.

Opposition lawmakers have [proposed 430 amendments to the budget but the government](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") accepted only 10.

($1 = 0.9630 euros)

(Reporting by Daria Sito-Sucic; Editing by Maju Samuel)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---