Croatia's budget revenues down 3.2 pct

Budgetary revenues in the first four months went down 3.2 percent compared with the same period in 2009, while expenditure rose by 1.7 percent, the Croatian Finance Ministry reported, adding that the mismatch between revenues and expenditures in April was almost negligible.
 

The ministry announced that Prime Minister Jadranka Kosor would address new income tax rates at the government session on Thursday.

The ministry said that reducing the income tax rate and abolishing the so-called crisis tax would bring an additional HRK 1.5 billion to citizens, while the reduction or cancellation of tax reliefs would bring them HRK 500 million less so in the end, citizens can count on HRK 1 billion a year more.

According to figures provided by the ministry, total budget revenues in the first four months totalled HRK 35.2 billion, down HRK 1.16 billion or 3.2 percent in relations to the same period in 2009.

In the same period total expenditures amounted to HRK 40.8 billion, which is HRK 681 million or 1.7 percent more than in the first four months last year. The budget deficit in the first four months totalled HRK 5.5 billion.

The finance ministry stressed that in April alone, budget revenues and expenditures were nearly balanced - revenues totalled HRK 9.85 billion, which expenditures coming to HRK 9.91 billion, Total deficit amounted to HRK 66.8 million.

The ministry said it expected the positive trend to continue.

Tax revenues in the first four months totalled HRK 19.7 billion, up 2.5 percent year-on-year.