Marić: The budget is achievable with maximum financial discipline

HDZ representative and chairman of the Finance Committee Goran Marić today dismissed the opposition’s claims that the proposed budget for 2010 is unrealistic and unachievable, stating that it is achievable under the assumption of maximum financial discipline and with the current tax burdens.

Stating today in the Croatian Parliament that the budget is always an ideal topic for opposing opinions, Marić told reporters that the proposed budget for the next year is "quite realistic" since it is, as he said, the result and consequence of long-standing accumulated problems in the Croatian economy and the consequences of the global economic crisis and the unfinished restructuring of state-owned public companies and enterprises. "It is also achievable, assuming that economic growth of 0.5 percent is achieved and that inflation is at the level of 3 percent. Of course, all effects from the introduction of new taxes and excise duties must meet expectations," he added.

Marić emphasizes that the budget is achievable "even with such tax burdens, under the assumption of maximum financial discipline." "Because otherwise, it is impossible to function," he added. He believes that no one in Croatia has the right not to pay taxes and to be different from everyone else when it comes to obligations to the state, and when asked if this means he advocates for a capital gains tax, he replied that he is not talking about new taxes but about the fact that many entrepreneurs in Croatia do not fulfill their obligations to the state (excise duties, profit tax, VAT). At the same time, these same entrepreneurs are the loudest in claiming that the state is the generator of illiquidity, he added.

I responsibly assert that the state is not the generator of illiquidity and that it regularly meets its obligations to entrepreneurs, while at the same time entrepreneurs do not meet their obligations to the Republic of Croatia, he said. "If only Ina settled all its obligations, major problems regarding illiquidity would disappear, and something urgently needs to be done about this," Marić said. When asked if the budget can be filled without the so-called crisis tax and new VAT rates, or only by increasing consumption, Marić replied that at the time of the introduction of the new tax and VAT, it was the "only solution." "And in the long term, we need to think about changing the system. In the long term, we need to think about relieving the economy and achieving more with as few taxes as possible," he said.

He also disagrees with the opposition’s claim that the budget only goes to consumption and that the government has not shown political will for reform implementation. "The statement is not entirely accurate because a large part of the budget goes to pensions, social benefits, and health insurance," he said, adding that he is pleased "that this budget proposal has not jeopardized any social rights, and some have even been increased." "It is true that there are still institutions that have not been thoroughly analyzed, for which after that analysis it needs to be determined how much they should be subsidized," he continued, mentioning HAZU, HNK, the Environmental Protection Fund, as well as the restructuring of railways and shipbuilding. He agreed with the assessment that Croatia needs tax reform in the future. "I believe the time for a general tax reform is coming, but it must not be made hastily, ad hoc, but must be the product of expert consideration and made by consensus. There is both time and will for this, and I hope we will certainly succeed in it," he said.  (H)