Page 120 - SE Outlook Regions 2022

Of the total €6.3bn sum, the country plans to invest €728mn to support
sustainable mobility by upgrading railway lines, developing autonomous
electric taxis with supporting infrastructure adapted for people with
disabilities, installing 1,300 charging stations for electric vehicles and
introducing zero-emission vehicles and vessels.

Another €126mn should go for improvement of digital connectivity of
rural areas, by increasing national broadband coverage with gigabit
connectivity in rural areas and the construction of electronic
communications infrastructure. Croatia will also invest €287mn to
support the digital transition of the public administration, including the
digitalisation of the justice system, the interoperability of the
government's information systems, the deployment of the Digital
Identity Card, the introduction of smart working arrangements and the
creation of a one-stop-shop for all the public administration's online
services.

The plan will also provide €739mn to improve the business environment
by reducing the administrative burden, lowering regulatory requirements
for professional services, and increasing access to financing for
businesses. Another €200mn will be invested in improving the efficiency
of the public sector and the justice system. Croatia will also invest
€277mn to support employment and social inclusion by redesigning
active labour market policies to boost employment and
self-employment, funding vouchers for training and upskilling
programmes, improving the adequacy, targeting and coverage of social
benefits and developing new social services.

4.5 Budget and debt - Kosovo

Kosovo’s 2022 budget foresees the highest and most comprehensive
set of expenditures so far.

Budget revenues are expected to amount to €2.36bn, which represents
an annual increase of 15%, according to the finance ministry.

The draft budget for 2022 aims to consolidate the economic revival,
ensure the sustainability of public finances, reorient the economy
towards production and exports, as well as to support employment and
sustainable economic development.

More specifically, the budget plans investment in education by
construction of new kindergartens and free education for all students.
Furthermore, the 2022 budget aims to help vulnerable groups of
citizens and supports the creation of new jobs and startup businesses.

For the health system, the 2022 budget provides an additional €24mn
for the provision of essential medicines.

The IMF said though the strength of the ongoing economic recovery
suggests that fiscal policy should revert to the fiscal rule beginning in

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