The Croatian government on Saturday forwarded to parliament a draft 2010 budget which envisages revenues of HRK 112.8 billion, up 1.5 per cent from this year, and expenditures of HRK 121.4 billion, HRK 904 million more than this year.

"I believe this can be a stable budget for 2010, primarily for strengthening the economy and directing budget funds to those who really need it," said Prime Minister Jadranka Kosor.

The 2010 budget projects a 0.5 per cent GDP growth and a central government deficit of 2.5 per cent of GDP.
The draft is in line with the attempts made in this year's three budget revisions, namely economising at all levels and giving up everything that can be done without, said Kosor.

However, she recalled the predetermined expenditures and the higher costs required for adjustment to European Union standards, saying that those costs, plus higher interest costs, would increase expenditures in 2010 by HRK 3.4 billion.

Kosor called for monitoring costs next year and additional cuts wherever possible, and announced the continuation of structural reforms, such as the state and public administration reform and changes to the policy of state support.

"There is a lot of difficult work ahead. There will be more difficult decisions," she said.