The annual report on Croatia’s state budget execution shows a strong economic growth of 3.9% in 2023, with rising wages and a reduction in public debt. However, the opposition and analysts highlight that most citizens have not felt an improvement in living standards due to inflation and inequality. The government increased expenditures, especially on public services, pensions, and social welfare, but faces criticism for lack of reforms in public administration and healthcare. The EU has warned about inequalities and poverty risks, while the government plans to increase defense spending. The opposition emphasizes the need to boost productivity and reduce taxes for workers with higher wages. The report points to challenges in fiscal policy and the need for responsible budget management amid global and domestic economic pressures.
Political Perspectives:
Left: Left-leaning sources emphasize the social inequalities and the fact that despite economic growth, the majority of citizens, especially pensioners and vulnerable groups, have not experienced improved living standards. They criticize the government for insufficient reforms in public administration and healthcare, and call for more social support and fairer distribution of wealth.
Center: Center-leaning sources acknowledge the positive economic indicators such as GDP growth and wage increases, but also highlight the challenges posed by inflation and public debt. They present a balanced view recognizing government efforts in fiscal responsibility while noting the need for cautious management of expenditures and reforms.
Right: Right-leaning sources focus on the achievements in economic growth, reduction of public debt, and increased defense spending. They tend to support the government’s fiscal policies and emphasize the importance of maintaining economic stability and national security, while often downplaying the criticisms related to social inequalities.
