The most important budgetary allocations in 2007 are those referring to pension allowances, salaries and the health system. Budgetary allocations for pension allowances are planned at 30.2 billion kuna or 6.1 percent more than this year.
Budgetary allocations for salaries amount to 25.4 billion kuna, and those for the health system 20.5 billion. Allocations for different population policy measures amount to 3.5 billion, which is 731 million more than this year.
The draft budget also envisages higher investments in education and science (up nine percent), which means that the Science and Education Ministry will have 10.4 billion kuna.
Increases in budgetary allocations are envisaged also for the ministries of the economy, labour and entrepreneurship, health and social welfare, finance, tourism, family affairs and war veterans, defence, the interior, etc.
Considering the overall budgetary revenue and expenditure, budgetary deficit in 2007 will amount to 4.6 billion kuna or 1.7 percent of GDP.
When the planned deficit of extrabudgetary funds and local government is added to this amount, general government deficit will account for 2.8 percent of GDP.
The deficit will be covered by seeking loans on the domestic market and with privatisation revenue.
The 2007 draft budget is assessed by the Finance Ministry as one aimed at a more even development of the country, with emphasis on a stronger economy, more investments into education and science, and greater social justice.
The draft budget also envisages the continuation of fiscal decentralisation and the government will amend the law on the financing of local government units to propose that income tax revenue be entirely allocated to local government units and that profit tax revenue be allocated to the central government.
Thus local government units will get an additional 800 million kuna.