Croatia's 2015 Budget Cuts 390 Million Euro

Croatia's centre-left government has presented a rebalanced state budget for 2015, cutting the deficit by some 390 million euro from about 2 billion euro to 1.57 billion euro, or 3.9 per cent of GDP.

Finance Minister Boris Lalovac held talks with all ministers to see where cuts in spending were possible.

The main "winner" in the rebalanced budget is the State Office for State Property Management, DUUDI, which will receive 3.9 million euro more in 2015 than 2014, a rise of 127 per cent.

It was agreed that the DUUDI needed more cash due to the enormous amount of state property being sold or leased in concession.

The Ministry of Construction and Planning receives 10.7 million euro, 17.3 per cent more than in 2014, due to work on rebuilding flooded areas.

The Ministry of Labour and Pensions receives 210 million euro more, 4.1 per cent more, which is largely a result of swapping the cost of child benefits with the Social Policy Ministry.

The biggest loser in the rebalanced budget is the central government office, which will spend 1.9 million euro less in 2015, which is 8.2 per cent down. Most of the cuts will come from savings on trips and material expenses.

The Ministry of Agriculture will get 20.5 million euro less in 2015, 5.6 per cent down, which will be saved by postponing some planned projects.

The Ministry for Entrepreneurship will get 1.3 million euro less, which is a cut of 4.3 per cent, as a result of savings on business subsidies.

The Health Ministry which will have 128 million euro less to spend in 2015, due to the fact that the public health fund has been taken outside the state budget and put under a budget of its own.