Croatia's Parliament Adopts 2010 Budget with 2.5% Deficit - Media

The projected budget deficit is lower than the shortfall of three percent expected this year, Reuters reported.

The 2010 budget targets revenue of 112.8 billion kuna ($23.3 billion/15.4 billion euro), 1.5% up on the year. Spending is projected at 121.4 billion kuna, or around 900 million kuna higher than this year.

For the first time, the government has earmarked some 550 million euro for adjustments needed for joining the EU, Reuters said. Croatia hopes to conclude accession talks next year and join the bloc in 2012.

The budget was drafted with an assumption for economic growth of real 0.5%, Hina added.

The assumption, analysts said, "was too optimistic after this year's expected contraction of between 5 and 6 percent", Reuters reported.

(1 euro = 7.311 Croatian kuna)