PM Kosor: Croatia is not in deep financial crisis.

By bne IntelliNews August 27, 2010
PM Jadranka Kosor said that the country was not in a deep financial crisis and that it succeeded to manage its public finances and meet its foreign and domestic obligations. She explained that the government was continuing the talks with banks in order to see what they could do to help overcome the crisis and spread its burden. We note that the government has forwarded to the parliament a budget revision, which envisages an increase of the 2010 budget deficit from 2.6% of GDP to 4.2% of GDP. Total revenues were seen down by HRK 4.5bn (EUR 619mn) to HRK 14bn in 2010, while the total expenditures rose by HRK 898mn to HRK 122.3bn. PM Jadranka Kosor stressed that the budget revision was not election oriented and said it aimed to protect standard of living and boost the economy. The budget revision envisages a reduction of the ministries' costs by HRK 1.5bn. The increase in the total expenditures has been attributed to additional funds for pensions (HRK 356mn), for jobless people (HRK 386mn), for agricultural subsidies (HRK 600mn), for natural disaster damages (HRK 300mn), for childbirth allowances (HRK 100mn) and for a referendum on amendments to the labour act (HRK 170mn). The government also decided to increase tobacco excise from 30% to 33% of the retail price and excise on lead-free gas from HRK 1.65 to HRK 1.90 per litre. The budget revision was based on the projections for the GDP drop of 1.6% y/y in 2010.

Related Articles

Croatian govt to acquire four companies part of 3.Maj shipyard.

The Croatian government decided on Thursday, March 21, to take over the ownership of all four companies part of local shipyard 3.Maj after which the privatisation of the parent company will be ... more

Croatias Dukat to make takeover bid for Slovenias Ljubljanske Mlekarne.

Croatian dairy producer Dukat said it intends to place a takeover bid for the 49.7% stake it does not yet own in Slovenian peer Ljubljanske Mlekarne. Dukats current stake of 50.3% in the ... more

Croatia's construction output down 2.1% y/y in Jan 2013.

Croatia's construction output fell 2.1% on the year in January 2013 after dropping an annual 19.9% a month earlier, the statistics office said, quoting unadjusted data. Working-day adjusted data, ... more

Dismiss