The government projected next year's budgetary revenues at 103.5 billion kuna, an increase of 9.1 per cent.
The present government's fourth budget focuses on the regional development of Croatia, promotion of a knowledge-based society, population policy, and continuation of infrastructure projects, Prime Minister Ivo Sanader said.
The government aims to further reduce the general government deficit to 2.8 per cent of Gross Domestic Product, forecasting the GDP growth rate at 4.5 per cent.
On the expenditure side, the most important items include pension benefits (30.2 billion kuna, 6.1 per cent more than this year), wages (25.4 billion kuna, a 7 per cent increase over this year), and health care (20.5 billion kuna).
Along with the budget draft, the government also sent to parliament a supporting bill on budgetary performance and draft amendments to the law on the funding of local government units.
Under the proposed amendments, profit tax revenues would go to the state, while income tax revenues would be transferred in full to local government units, which would bring them an additional 800 million kuna annually.