Prime Minister Jadranka Kosor met this morning with President Ivo Josipović to present the budget rebalance, which she will also discuss with representatives of the Croatian Employers’ Association during the morning hours.
At the Government session in the afternoon, members of the Government are expected to accept the proposal for the rebalance so that it can be sent for discussion in the Parliament. Yesterday finally revealed what measures the Government will take in a very difficult budget deficit situation. After discussions with coalition partners and then with social partners, it became clear that the announced significant cuts in the budget rebalance would not happen, and it has already been dubbed "cosmetic." The rebalance will not reduce salaries and pensions, nor will new taxes be introduced.
The ministries will save one and a half billion kuna, and the deficit, which is speculated to reach 12 billion kuna by the end of the year, will be addressed through new borrowing. While many economists are pulling their hair out, for some citizens, there is good news. Revenues will increase due to higher excise taxes on gasoline, but not on diesel – and on tobacco products. Cigarettes are expected to increase in price by one kuna. The solution for the deficit, which will certainly not be less than ten, and possibly twelve billion by the end of the year – the ruling party has found in borrowing. The Prime Minister also announced the adoption of a special conclusion. (www.hrt.hr)
