The government gave a positive opinion on the report at a session on Thursday, proposing its adoption by the parliament.
Government subsidies accounted for 2.84 per cent of the GDP in 2005, as against 2.78 per cent in 2004.
The increase in subsidies was the result of growing subsidies to the transport and agriculture sectors, the report says.
A third of last year's subsidies, notably 2.18 billion kuna or 33.5 per cent, was allocated to the agriculture and fisheries sector, 4.03 billion kuna or 61.85 per cent went to the industry and services sector, while the rest was spent on regional and local subsidies.
Also at today's session, the government decided to allot the Borongaj army barracks in Zagreb to the Ministry of Science, Education and Sport for the construction of a university campus.
(1 euro = 7.4 kuna)