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Public Investments in Croatia


  • Katarina Ott

    (Institute of Public Finance, Zagreb)

  • Anto Bajo

    (Institute of Public Finance, Zagreb)


The purpose of this paper is to analyze public investment or capital expenditures in the Republic of Croatia. The paper begins with an overview of public sector statistics regarding capital investment financing. One of the most difficult tasks was to adapt the idiosyncratic reporting method of Croatian public sector statistics to more usual public expenditure conventions. After an attempt at statistical systematization in line with conventional procedures, and analysis of the results obtained, the paper tries to point to the problems that arise during the preparation and execution of the budget. These problems are connected with existing participants in the budget process: local governments, public enterprises, extra-budgetary funds, government agencies, the payments clearing agency, the government auditing agency, and the (non)existent government treasury. The paper offers some suggestions for improvements in the capital investment financing process. These relate to the improvement of public sector statistics; the establishment of the government treasury; the reevaluation of the roles of the payments clearing agency, the other government agencies and the public enterprises; problems of local government financing, of the allocation of funds through the Croatian Bank for Reconstruction and Development, of development vs. reconstruction financing, of government auditing, of government guarantees, and of the necessity of foreign sources of financing. The paper especially emphasizes the fact that no cost benefit analysis and no transparent bidding for and evaluation of budget project procedures are involved. Further research should contribute to the solution of the problems identified.

Suggested Citation

  • Katarina Ott & Anto Bajo, 1999. "Public Investments in Croatia," Occasional paper series 07, Institute of Public Finance.
  • Handle: RePEc:ipf:occasi:7

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    References listed on IDEAS

    1. Murray, Matthew N., 1995. "Sales Tax Compliance and Audit Selection," National Tax Journal, National Tax Association, vol. 48(4), pages 515-30, December.
    2. Pommerehne, Werner W & Weck-Hannemann, Hannelore, 1996. "Tax Rates, Tax Administration and Income Tax Evasion in Switzerland," Public Choice, Springer, vol. 88(1-2), pages 161-170, July.
    3. Richard M. Bird, 2014. "Administrative Dimensions of Tax Reform," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 963-992, November.
    4. Murray, Matthew N., 1995. "Sales Tax Compliance and Audit Selection," National Tax Journal, National Tax Association, vol. 48(4), pages 515-530, December.
    5. Glenn Jenkins, 1992. "Economic Reform And Institutional Innovation," Development Discussion Papers 1992-04, JDI Executive Programs.
    6. David Wildasin, 1996. "Introduction: Fiscal Aspects of Evolving Federations," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(2), pages 121-135, May.
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    More about this item


    public investment; Europe; public expenditures;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe


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