Zdravko Marić: Reducing the Expenditure Side of the Budget is the First Move of the Ministry of Finance

Finance Minister Zdravko Marić and Prime Minister Tihomir Orešković held a meeting where they outlined the first steps of the ministry.

A smaller deficit, economic growth, and a more active use of state assets, especially dormant capital, are the primary goals of the Ministry of Finance. There is no doubt that cuts will have to be made, acknowledged Minister Zdravko Marić for HRT, but when asked where cuts will be made, he stated that he would not speculate on the details. The intention is for the Ministry of Finance to create a framework, guidelines for fiscal policy, and set limits on the expenditure side of the budget. This year, they should aim for a nominal reduction in the budget.

What is necessary is to reduce the expenditure side of the budget as it is one of the fundamental levers to reduce the deficit.

– We have exhausted the revenue side. Our desire is to think about how to relieve the economy rather than the opposite, says the finance minister.

There are three basic pillars for reducing public debt – the deficit, economic growth – its acceleration and sustainability, and more efficient use of state assets, especially those that are not in use.

In response to the observation that GDP has been growing by an average of two percent over the last two quarters, which means a six percent increase in salaries for public sector employees and a cost of 1.8 billion kuna, he stated that they will send a clear message that they are open to discussions, “they will not immediately go for an increase.”

Regarding the franc and the case review, he said that both he and the prime minister lack facts. – We want to open a dialogue between citizens, banks, and the Croatian National Bank.