Monday, 19 April 2021
Minister of Finance, Zdravko Marić Minister of Finance, Zdravko Marić Twitter

Financial cost of corona pandemic on Croatia more than 32 billion and counting

By  The Dubrovnik Times Apr 03, 2021

The total financial effect of the corona crisis on the budget so far amounts to more than 32 billion Kuna, said the Minister of Finance, Zdravko Marić, in an interview for Večernji List.

Of that amount, about 13 billion Kuna refers to the decline in budget revenues, which includes measures to write off taxes and contributions, while more than 19 billion Kuna refers to direct expenditures and budget expenditures caused by the coronavirus pandemic.

Marić added that the largest part of direct expenditures falls on job preservation measures, for which 10 billion Kuna has been paid so far, while about two billion Kuna has been provided for additional costs in health care. The remaining amount mostly refers to budget transfers for maintaining liquidity to the health system.

“The fact is that we used grants from the EU program of 5.9 billion Kuna, most of which came from the REACT-EU program for the measure of preserving jobs. However, when the mentioned overall financial effect of the corona crisis is taken into account, it is a clear conclusion that so far the majority of the costs have been borne by the state budget. This affected the increase in the share of public debt, which at the end of 2020 was at the level of 89.1 percent of GDP," said Marić.


The Voice of Dubrovnik


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