Regaining Fiscal Sustainability and Enhancing Effectiveness in Croatia : A Public Expenditure and Institutional Review

The report presents the macroeconomic setting, and fiscal developments in the 1990s in Croatia, a country facing an unparalleled opportunity towards sustainable growth, and integration into the European Union. Nonetheless, the country needs to sustain macroeconomic stabilization, and improve the investment climate. To this effect, public sector reform needs to be oriented to diminish the size of the state, and reduce the fiscal deficit to sustain macroeconomic stability in the medium term. Yet, the scope for reducing the deficit through revenue increases is limited, even though a decrease in the tax burden would be highly desirable. This means that most of the adjustment will need to be made in public expenditures, particularly by identifying, and implementing policies that will reduce the level of expenditures, while improving their effectiveness; thus, budgetary management improvement will be critical to this effort. The report analysis indicates that the current budget in Croatia is not a comprehensive measure of all fiscal activity, namely that five extra-budgetary funds are not included in the budget; that off-budget revenues, outside of the extra-budgetary funds, still exist; that the cash budgeting system leads to the accumulation of arrears that do not appear in budget presentations; and, that laws outside of the budget law, lead to mandatory spending that falls outside of the budget process.

Bibliographic Details

Main Author:	World Bank
Format:	Publication biblioteca
Language:	English en_US
Published:	Washington, DC 2002-03
Subjects:	ACCOUNTING, ADMINISTRATIVE COSTS, AFFILIATES, AUDITING, BANKING SECTOR, BUDGET CONSTRAINT, BUDGET EXECUTION, BUDGET FORMULATION, BUDGET LAW, BUDGET MANAGEMENT, BUDGETARY FUNDS, CAPITAL MARKETS, CENTRAL GOVERNMENT, CIVIL SERVICE, CONSTITUTION, CORPORATE INCOME TAX, CPI, DEPOSIT INSURANCE, DEVOLUTION, EBF, ECONOMIC ACTIVITY, EXCHANGE RATE, EXECUTION, FINANCIAL INSTITUTIONS, FINANCIAL VIABILITY, FISCAL, FISCAL ADJUSTMENT, FISCAL BURDEN, FISCAL CRISIS, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICY, FISCAL RETRENCHMENT, FISCAL SITUATION, FISCAL STRESS, FISCAL SUSTAINABILITY, FOREIGN DIRECT INVESTMENT, FORMAL SECTOR, GNP, GOVERNMENT BUDGET, GOVERNMENT BUDGETS, GOVERNMENT EFFORTS, GOVERNMENT FINANCE, GOVERNMENT FINANCE STATISTICS, GOVERNMENT LEVEL, GOVERNMENT OFFICIALS, GOVERNMENT PROGRAM, GOVERNMENT REVENUES, GOVERNMENT SIZE, GROSS DOMESTIC PRODUCT, GROSS NATIONAL PRODUCT, HEALTH EXPENDITURES, HEALTH SERVICES, HEALTH SPENDING, HIGH UNEMPLOYMENT, INCOME, INFLATION, INSTITUTIONAL ARRANGEMENTS, INSURANCE, INTEREST RATES, INTERNATIONAL MONETARY FUND, LABOR FORCE, LABOR MARKET, LEGISLATION, LICENSES, LOCAL AUTHORITIES, LOCAL GOVERNMENTS, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MACROECONOMICS, MINISTRIES OF DEFENSE, MINISTRY OF FINANCE, PAYROLL TAXES, PENSION FUND, PENSION REFORM, PENSIONS, POLICY DECISIONS, POLICY MAKERS, POVERTY ALLEVIATION, POVERTY LINE, PRIVATE SECTOR, PRIVATE SECTOR PARTICIPATION, PRIVATIZATION, PRIVILEGED GROUPS, PROFITABILITY, PUBLIC DEBT, PUBLIC EMPLOYMENT, PUBLIC ENTERPRISE, PUBLIC ENTERPRISES, PUBLIC EXPENDITURE, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SECTOR EMPLOYMENT, PUBLIC SECTOR EXPENDITURES, PUBLIC SECTOR REFORM, PUBLIC SECTOR WAGES, PUBLIC SECTOR WORKFORCE, PUBLIC SERVICE, PUBLIC SPENDING, RATIONALIZATION, REAL WAGES, RECAPITALIZATION, REDUCTION IN EMPLOYMENT, REHABILITATION, REORGANIZATION, RESOURCE MOBILIZATION, RETIREMENT, REVENUE COLLECTION, SAVINGS, SOCIAL ASSISTANCE, SOCIAL COSTS, SOCIAL PROTECTION, SOCIAL SECTOR, SOCIAL SECTOR EXPENDITURES, SOCIAL TRANSFERS, SOCIAL WELFARE, STATE BUDGET, SUSTAINABLE GROWTH, TAX, TAX BURDEN, TAX COMPLIANCE, TAX EXEMPTION, TAX REFORM, TAX REVENUES, TAXATION, TIGHT MONETARY POLICY, TOTAL EXPENDITURES, TRANSPORT, TREASURY,
Online Access:	http://documents.worldbank.org/curated/en/2002/03/1758908/regaining-fiscal-sustainability-enhancing-effectiveness-croatia-public-expenditure-institutional-review http://hdl.handle.net/10986/13993
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