Association of Entrepreneurs urges fiscal responsibility in Croatia

The Association of Entrepreneurs (UGP) has responded to the proposed 2026 state budget rebalance, welcoming the planned reduction in the budget deficit and the decreasing ratio of public debt to GDP. However, the organization warns that increased revenues should not be treated as surplus funds for the government.

According to the proposal, revenues are set to increase by 853 million euros while expenditures rise by 745 million euros. UGP notes that approximately nine out of every ten additional euros collected are earmarked for increased spending. The association advises against taking on new permanent budgetary obligations based on current revenue growth without a clear long-term financing plan.

UGP is calling for greater transparency and accountability in public spending, arguing that the standards applied to the private sector should also apply to the state. They are requesting that ministries provide accessible data, impact analyses, and evaluations of significant reforms and programs to demonstrate the measurable results of public expenditures.