Finance Committee Supports Budget Rebalance

The parliamentary Finance Committee has supported the government’s proposal for a rebalance of this year’s state budget by a majority vote, which increases budget revenues by 1.4 billion kuna, expenditures by 1.5 billion kuna, and raises the budget deficit by 100 million kuna, maintaining it at the level of 10 billion kuna.

Regarding fiscal consolidation, the government has sought to adhere to the targeted deficit of 10 billion kuna. On the revenue side, there is a correction and increase of 1.4 billion kuna, which is an increase of 1.3 percent compared to the plan, while on the other hand, there is a correction of expenditures of 1.5 billion kuna, said Deputy Finance Minister Boris Lalovac.

At the beginning of the year, the government ambitiously announced economic growth based on part of the investments ‘under state jurisdiction’, but some of those investments were delayed due to numerous operational problems, Lalovac reported. Interestingly, he noted, contributions have increased by one billion kuna more than planned.

Contributions are the result of legal solutions, but you have placed the state above the workers. However, you are not taking into account what is happening with the other part of the salary, accused ruling HDZ member Đuro Popijač, adding that the question remains whether the employer merely fulfills their obligation and pays the contribution, while the question of what happens to the other part of the salary for workers remains open.

HDZ’s Martina Dalić commented on the increase in budget reserves to fund enforcement proceedings, stating that she is unclear why there are items for enforcement and court disputes that are being reduced, while reserves are increasing with the explanation that they pertain to enforcement.

Lalovac stated that they have attempted to establish a list of obligations to see who is suing the state, and it has been determined that there are 4.5 billion kuna for enforcement.