ZAGREB (Reuters) - The Croatian government adopted on Thursday a 2016 budget with a general deficit target of 2.7 percent of gross domestic product, with the package now sent to parliament for approval.
"This is the lowest targeted budget gap since 2008. If we apply European Union methodology, the gap still remains below three percent of GDP which is our goal," Finance Minister Zdravko Maric told a cabinet session.
Parliament is likely to vote on the budget at the end of next week.
Last year's budget gap figure has not been officially released yet, but is expected at slightly above four percent of GDP.
Croatia, the newest European Union member, is under scrutiny from Brussels for high budget deficits and a public debt which surpasses 85 percent of GDP. The EU is urging Zagreb to push the budget gap to below three percent and gradually reduce the public debt towards sustainable levels.