The plan for the budget rebalancing, which includes cutting expenditures and possibly increasing revenues, will be presented to coalition partners on Monday.
In the meantime, various speculations about budget funding are circulating in the public. There has also been information about increasing VAT to 24 or even 25% to patch the growing hole in the budget. However, HTV sources in the Government firmly deny this and claim – there will be no increase in VAT. The Prime Minister’s advisors are adamant about one thing: any new tax would bring new šteta to the economy.
Will Prime Minister Jadranka Kosor listen to her advisors or coalition partners? When it comes to the increase in VAT, it seems she will listen to her advisors. I will not comment on all this speculation because one comment provokes 400 other comments, speculations. It is clearly about balloons coming from different circles, she said. The Prime Minister has abandoned the second tax, the one on banks, our sources claim. (www.hrt.hr)
