Politics

Funds for Reconstruction Not Decreased but Increased, FinMin Tells Lawmakers

By 18 May 2022
Funds for Reconstruction Not Decreased but Increased, FinMin Tells Lawmakers
Image: Zdravko Marić/HDZ Facebook screenshot

ZAGREB, 18 May 2022 - Speaking in the Sabor on Wednesday, Finance Minister Zdravko Marić denied claims by some opposition MPs that allocations for post-earthquake reconstruction had been decreased in the 2022 budget revision was decreasing allocations for reconstruction.

Funds are not being decreased, in fact, they are being increased by about HRK 300 million and the use of funds has been facilitated, Marić told lawmakers during a debate on the state budget revision.

Prior to the formal debate on the budget revision, the opposition made a series of objections to the government's document, saying that funds for healthcare had not been planned well and that funding for reconstruction was being decreased.

Social Democratic Party (SDP) leader Peđa Grbin asked why funds for reconstruction were being decreased by more than HRK 100 million.

He recalled that when the budget was adopted the SDP said that the allocation for the health sector had not been planned well and concluded that another budget revision would be necessary in the autumn and possibly a third one by the year's end.

Anka Mrak Taritaš (Glas) said the budget revision was proof that there would be no reconstruction. She said that funds had been increased for the health and defence ministries, which, she said, were headed by the two least successful ministers.

MP: Damage caused by inflation possibly HRK 20 billion

MP Zvonimir Toskot (Bridge) said that his party had calculated that the damage caused by inflation could amount to HRK 15 or even HRK 20 billion and that "nobody is discussing how to compensate for that damage," to be paid by the entire society.

If the cost of corruption of HRK 70 billion is added, we get an amount of HRK 90 billion, which is half the budget, he said.

Željko Sačić (Sovereignists) said that he was unpleasantly surprised that the revision did not allocate more funds to the USKOK anti-corruption office or the state attorney's office to improve their working conditions.

"It seems as though the state has profited in this crisis. The question though is how will citizens and enterprises survive," said MP Ružica Vukovac, noting that the state had collected HRK 1.8 billion more in VAT and HRK 1.9 billion more in contributions on wages.

HDZ group supports budget revision

The Croatian Democratic Union (HDZ) group supported the government's budget revision proposal.

Grozdana Perić (HDZ) recalled that the start of the year brought new geopolitical problems resulting in problems in energy supply and inflation growth, which was why the government had to deal with additional problems, such as ensuring the sustainability of the health sector, pensions, and help citizens with energy prices.

Ivana Posavec Krivec (Social Democrats) responded by saying that the budget revision was not due to the situation caused by global circumstances but rather due to the government's poor budget planning and the failure to implement crucial reforms.

For more, check out our politics section.

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