August 2 (SeeNews) - Croatia's government plans to cut budget deficit to 0.2% of gross domestic product (GDP) next year from 0.4% forecast for 2019 and targets budget surplus in each of the following two years, it said.
The budget is expected to be in surplus equivalent to 0.2% of GDP in 2021, which would further increase to 0.6% of GDP in 2022, the government said in a press release on Thursday after its regular meeting, at which prime minister Andrej Plenkovic presented the cabinet's economic and fiscal policies blueprint for 2020-2022.
The document reaffirms the government's projections for 2.8% GDP growth this year, which would slow down to 2.5% in 2020 and 2.4% in each of 2021 and 2022.
Plenkovic said that increased absorption of EU funds will support economic growth.
Finance minister Zdravko Maric said that next year's budget revenue is projected at 141.6 billion kuna ($21 billion/19 billion euro), while budget expenditure is planned at 144.3 billion kuna.
The 2019 budget bill targets revenues of 136.1 billion kuna and expenses of 140.3 billion kuna.
(1 euro = 7.38340 kuna)