About Guidelines on the Preparation of the Croatian National Budget for 2016 and Projections for 2017-18

Abstract

The Croatian Government on February 25, adopted Guidelines on the Preparation of the National Budget for 2016 and Projections for 2017-18 which, regretfully, failed to fulfil what is expected from any government, especially a new one. They do not contain clear economic policy goals or describe how the Government would respond to challenges posed by changes in the macroeconomic and fiscal frameworks. Moreover, the difference between the resources necessary for the implementation or modification of current programmes and activities and those needed for the new ones is only given in aggregate terms and without adequate substantiation. Yet the most important part is the planned budget deficit, by far the lowest among the deficits we have become inured to lately. At least this should inspire hope, provided that it rests on realistic assumptions. While the adoption of the 2016 budget is perceived as „a matter of life and death“ for both the country and Government, a timely, complete and fully transparent budget process for the period 2017-19 is equally, if not even more, important for restoring order in the country and establishing clear economic and fiscal policies. After all, according to the Budget Act, this process should already have started.