Presenting the document, Defence Minister Berislav Roncevic said the national armed forces and the defence sector were ready to carry out all tasks provided for under the Constitution and laws.
The minister said that the military was intensively conducting a long-term development plan for the 2006-2015 period and its adjustment to NATO and European Union standards.
At the end of 2006, there were 23,874 persons in active military service.
According to the minister, Croatia is facing little risk of conventional threats such as war but there is a risk of terrorism which is why the armed forces should be reformed to be able to handle such challenges.
Minister Roncevic also said that NATO had recognised Croatia's direct capability of independent strategic planning.
The reform includes the reduction of the number of military personnel, personnel rejuvenation given that the average age of personnel is now 38.8 years, and better education and training.
Roncevic also commended army personnel for their readiness to take part in international military exercises and in peace missions such as ISAF in Afghanistan.
"The armed forces continue to enjoy a good reputation and the confidence of citizens," the minister said.
Prime Minister Ivo Sanader recalled that Croatia was expecting next year an invitation for admission into NATO.
Also on Friday, the government sent to parliament draft amendments to the state border control law. The amendments, made in accordance with EU rules, require air carriers to send data about passengers to the border police, provide a legal framework for the keeping of operational databases by the border police, and specify data that may be kept in those databases.