The government moves the budget of 98.8 billion kuna, and figures are based on an economic growth of four percent and a three-percent inflation rate with the general government deficit accounting for 3.3 percent of Gross Domestic Product, he said.
Sanader announced that the general state expenditure should be below 50 percent of GDP next year for the first time.
The government will continue to invest into projects of capital importance such as highway and railway projects.
The government will also help build schools and hospitals, and higher investments are envisaged for science and education, the premier said.
He announced measures aimed at demographic revival and better social protection of children and the family.
The budget includes a new programme for creation of new jobs and 150 million kuna will be ensured for that purpose.
Sanader said that 5.7 billion kuna would be spent for the removal of the consequences of the 1990s war.
He told members of parliament that the budget would also back Croatia's ambitions to join the European Union as soon as possible.
Parliament Speaker Vladimir Seks announced that the adoption of the state budget would be on the agenda next Tuesday, 29 November.