CAN CURRENT FISCAL POLICY INITIATE ECONOMIC GROWTH IN CROATIA?

Autori se u ovom članku bave analizom aktualne fiskalne politike i pokušajem konsolidacije državnog proračuna, jednako kao i njihovim mogućim efektima na budući gospodarski rast. Nositelji ekonomske politike danas u Hrvatskoj poduzimaju niz reformi čiji je cilj prvenstveno smanjenje javne potrošnje, zaduženja države i uravnoteženje proračuna, a ostvaruje se smanjenjem socijalnog standarda, kapitalnih ulaganja, ulaganja u znanost i obrazovanje. U zemlji u kojoj tržišna infrastruktura ne postoji i tržišni se zakoni ne provode, samim smanjivanjem javne potrošnje ne može se potaknuti gospodarski rast.During 1992-1999 in Croatia significant expansion of public expenditure followed by the primary budget deficit was registered. The only exception was the year 1998, when the primary budget suficit was achieved as a result of VAT introduction. A large number of consequences have arisen from the budget deficit and unsustainable public spending expansion in the present economic condition. Direct consequence can be seen through national saving decline, investment and net export decline to illiquidity and solvency problemin the firms. Fiscal consolidation and cuts in public spending in Croatia are needed forlong-term and stable economic growth. However, if the government will not invest ineducation, science, infrastructure, research and development, the fiscal consolidation efforts will be in vain. The private returns in Croatia are less in comparison to the state returns inmentioned area, so extra budgetary efforts for growth-generating governments project will be needed in order to achieve future high growth rates