Instead of 2010, the government plans to balance budget expenditures with revenues as early as next year. Economists we consulted regarding the zero deficit policy consider it a bad idea, but the head of INA believes that companies should follow the government’s austerity program.
Ljubo Jurčić, President of the Croatian Economic Society
The zero deficit is a completely wrong policy as it symbolizes only the stability of public finances, while public and monetary finances must support the real sector. Therefore, one must always look at their effects on the economy. A budget deficit is necessary as a source of financing to remove barriers to increasing domestic production, especially when it is assessed that the rate of increase in domestic production is higher than the rate of the deficit.
Žarko Primorac, Economic Analyst
It is good that savings are planned, but the zero deficit policy in such a state is not the most prudent solution. We should focus on stimulating production and preserving jobs. For production and exports, having a negative deficit is not bad, but within the Maastricht criteria. For me, the zero deficit would not be a priority.
Tomislav Dragičević, CEO of INA
I support the government’s austerity program. Before I knew about this plan, I ordered that a spending plan be made at INA at the same level as in 2008. It is easier to tell people that they have the same amount available as last year than to reduce or increase their expenditures. (H. M.)
