September 9 (SeeNews) - Croatia's general government budget was in deficit of 9 billion kuna ($1.4 billion/1.4 billion euro) in the first half of 2021, equivalent to 2.3% of the gross domestic product (GDP) projected for the year, finance minister Zdravko Maric said on Thursday, citing national methodology.
The deficit in Croatia's state budget amounted to 9.8 billion kuna in the first six months of the year, or some 2.5% of planned GDP, he said during a cabinet meeting, according to a video file published on the government's website.
After an annual contraction of 0.7% in the first quarter, the national economy expanded by record high 16.1% year-on-year in the second quarter, positively affecting the revenue side of the budget, the minister explained.
The first-half budget revenue rose by 22.8% on the year, with tax revenue up 16.9%, while budget expenditure increased by 8.9%.
The average inflation measured by consumer prices was 1.2% in the first half of 2021, driven primarily by higher oil prices, Maric said.
Croatia's government said earlier it expects a general government deficit equivalent to 3.8% of the projected GDP in 2021.
(1 euro=7.484 Croatian kuna)