Page 119 - SE Outlook Regions 2022

surplus of BGN570mn (€291.4mn), equalling to 0.4% of the projected
end-year GDP.

In January-November, revenues and grants increased by BGN7.4bn
year on year to BGN47.79bn. They were equal to 94.5% of the plan for
the year. Expenditures increased to BGN47.22bn in the first eleven
months from BGN39.91bn a year ago, equalling to 85.6% of the plan
for the year.

Bulgaria has set a budget deficit of 5% for 2021, with economic growth
seen at 2.5%. In 2020, the deficit was 5.2% of GDP due to increased
spending related to the coronacrisis, while in 2022 the deficit is
anticipated to fall to 1.9% of GDP.

In September, parliament adopted a budget revision, proposed by
caretaker government of Prime Minister Stefan Yanev. It would allow
the spending of BGN1.8bn (€920.3mn) more than the initial plan, which
would be compensated for by an additional BGN2bn revenue thanks to
efforts at better tax collection.

Bulgaria’s central government debt increased 6.8% year on year to
BGN31.12bn (€15.91bn) at the end of October, after rising by 2.3% y/y
in September.

In month-on-month terms, the debt stock increased 3.3% in October
after moving up 3.5% in September. The debt-to-GDP ratio stood at
24.2% at end-October, up from 23.5% the previous month.

4.4 Budget and debt - Croatia

Croatia’s budget deficit is set at 2.6% of GDP for 2022, down from 4.5%
expected in 2021. The country aims to meet the fiscal convergence
criteria for joining the euro area.

Total budget revenue for 2022 is projected at HRK164.5bn (€21.9bn),
while the expenditure is projected at HRK174bn.

The public debt to GDP ratio is expected at 83.1% of GDP in 2021, and
should fall to 80.7% in 2022, 78% of GDP in 2024.

Croatia has already received €818mn in a pre-financing payment under
the Recovery and Resilience Facility (RRF) in September. The sum is
equivalent to 13% of the country's total financial allocation under the
RRF.

Croatia is set to receive €6.3bn under the RRF. The next disbursements
will be based on the implementation of the investments and reforms
outlined in Croatia's recovery and resilience plan.

The Croatian plan includes investments in green transition, digital
transition and in reinforcement of economic and social resilience.

119 SE Outlook 2022 www.intellinews.com