The Fiscal Commission warns the government to strengthen spending controls

HRT (Hrvatska radiotelevizija)State / PublicCenter2 hr. ago

The Fiscal Council has warned the Croatian government to strengthen expenditure control, stating that the proposed budget rebalancing for 2026 does not demonstrate a clear structural shift toward sustainable public spending, despite efforts to maintain short-term fiscal discipline. The council emphasized the need for stronger fiscal consolidation and alignment of fiscal policy direction to enhance resilience of public finances, improve efficiency of public spending, and consistently meet medium-term fiscal obligations. While Croatia’s economy showed resilience in the first half of 2026 with a real GDP growth of 1.9%, the council notes signs of slowing economic activity, employment stagnation, slower income growth, and persistent inflationary pressures. These trends highlight challenges related to maintaining purchasing power, competitiveness of the production sector, and long-term sustainability of public finances. The council warns that slower economic growth or reduced consumption could limit revenue realization and further complicate budget execution. Total expenditures still exceed revenues by approximately four billion euros, and the projected deficit under ESA 2010 method is

Bias read (Center): The article presents a neutral report on the Fiscal Council's recommendations regarding the national budget and fiscal policy. It provides factual assessments and warnings without overtly favoring any political side. The language remains objective, focusing on economic indicators and policy needs.

tportalIndependentCenter2 hr. ago

The Fiscal Policy Council has advised the Croatian government to strengthen expenditure control, stating that the proposed 2026 budget rebalancing does not demonstrate a clear structural shift toward more sustainable public spending, despite efforts to maintain short-term fiscal discipline. The council emphasized the need for stronger fiscal consolidation and alignment of fiscal policy direction to enhance resilience of public finances, improve efficiency of public spending, and consistently meet medium-term fiscal obligations. While the domestic economy showed resilience in the first half of 2026 with a real GDP growth of 1.9%, the council noted signs of slowing economic activity, employment stagnation, slower growth in real incomes, and persistent inflationary pressures. These trends highlight challenges related to maintaining purchasing power, competitiveness of the production sector, and long-term sustainability of public finances. The council warned that weaker consumption could limit the achievement of planned revenue targets and complicate the implementation of the budget. Despite a reduction in the projected deficit by 108 million euros, total expenditures still exceed the

Bias read (Center): The article presents the recommendations of the Fiscal Policy Council in a neutral manner, focusing on their analysis of the 2026 budget and the need for fiscal consolidation. There is no evident ideological framing or biased language; the content remains focused on economic indicators and policy建议.