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Through the 1990's whereas present process the method of country construction, Croatia made major strides in inner most region improvement and privatization. besides the fact that, faced through the effect of struggle and the necessity for reconstruction, a reasonably giant deficit used to be gathered. the hot executive put in in 2000, used to be faced with the necessity to identify a extra sustainable monetary coverage whereas faced through excessive unemployment and social spending.

This file incorporates a thorough research of the components severe to a better budgetary administration strategy together with expenditure reorientation and restructuring. It offers specific options to facilitate the efforts of the Croatian govt in decreasing public spending whereas bettering its effectiveness.

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Additional info for Regaining fiscal sustainability and enhancing effectiveness in Croatia: a public expenditure and institutional review

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2 o f GDP. Another w a y to assess the Government’s fiscal policy i s to examine the scope and role o f the public sector in overall context o f the economy. The role o f the Government can b e analyzed at a sectoral level; this analysis i s carried out in the next chapter. In fact, Chapter I1discusses the type o f Government intervention in k e y spending sectors, going into efficiency and equity considerations o f the Government’s interventions, as w e l l as the potential and convenience for the private sector to take over or complement the public sector in each o f the sectors analyzed.

The General Government financial reporting excludes the Croatian Privatization Fund (CPF), Bank Rehabilitation Agency (BRA), Payment Institute, Croatian Roads, Croatian Highways and the Croatian Bank for Reconstruction and Develooment (HBOR). The latest expansion in expenditures and in deficits has been m a i n l y concentrated in the extra-budgetary funds (EBFs) and in particular, the Pension and the H e a l t h Funds. '' Revenues f r o m the EBFs declined slightly, as a share o f GDP, over the 1994-99 period.

General Government / Local and Regional 1 "1 i Governments: 420 municipalities, 122 cities and 21 counties. 1. The Road fund was absorbed into the Central Budget in 1995, being replaced by the Croatian Roads and the Croatian Highways in 2001. 2. The General Government financial reporting excludes the Croatian Privatization Fund (CPF), Bank Rehabilitation Agency (BRA), Payment Institute, Croatian Roads, Croatian Highways and the Croatian Bank for Reconstruction and Develooment (HBOR). The latest expansion in expenditures and in deficits has been m a i n l y concentrated in the extra-budgetary funds (EBFs) and in particular, the Pension and the H e a l t h Funds.

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