Croatia - Regaining Fiscal Sustainability and Enhancing Effectiveness : A Public Expenditure and Institutional Review
The report presents the macroeconomic setting, and fiscal developments in the 1990s in Croatia, a country facing an unparalleled opportunity towards sustainable growth, and integration into the European Union. Nonetheless, the country needs to sust...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/11/1631673/croatia-regaining-fiscal-sustainability-enhancing-effectiveness-public-expenditure-institutional-review http://hdl.handle.net/10986/15484 |
| Summary: | The report presents the macroeconomic
setting, and fiscal developments in the 1990s in Croatia, a
country facing an unparalleled opportunity towards
sustainable growth, and integration into the European Union.
Nonetheless, the country needs to sustain macroeconomic
stabilization, and improve the investment climate. To this
effect, public sector reform needs to be oriented to
diminish the size of the state, and reduce the fiscal
deficit to sustain macroeconomic stability in the medium
term. Yet, the scope for reducing the deficit through
revenue increases is limited, even though a decrease in the
tax burden would be highly desirable. This means that most
of the adjustment will need to be made in public
expenditures, particularly by identifying, and implementing
policies that will reduce the level of expenditures, while
improving their effectiveness; thus, budgetary management
improvement will be critical to this effort. The report
analysis indicates that the current budget in Croatia is not
a comprehensive measure of all fiscal activity, namely that
five extra-budgetary funds are not included in the budget;
that off-budget revenues, outside of the extra-budgetary
funds, still exist; that the cash budgeting system leads to
the accumulation of arrears that do not appear in budget
presentations; and, that laws outside of the budget law,
lead to mandatory spending that falls outside of the budget process. |
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