According to information from circles close to Markov Trg and Katančićeva, Finance Minister Ivan Šuker is seriously considering excluding one of the ‘losers’ – HZZO – from the deficit, as reported by the business weekly Lider.
Since this is an off-budget fund that could accumulate up to three billion kuna in deficit by the end of the year, the minister could attempt to reduce the share of the budget deficit in GDP. Excluding HZZO from the deficit is necessary for the Government for at least two reasons. The ineptitude and indecision in managing public finances when public debt exceeds 60 percent, and when we spend 17 percent of GDP on refinancing, are clear and alarming signals that we may soon need the IMF. The second reason is the upcoming elections and the possibility that three billion kuna could be used to gather votes.
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