Finance Ministry says budget revenues practically at the same level as last year

Budget revenues in January amounted to HRK 7.7 billion, which is 282.3 million or 3.6 percent less than in January 2009, while budget expenses amounted to HRK 9.6 billion, which is HRK 798.6 million or 9.1 percent more than in the same month of last year, officials at the Finance Ministry said on Thursday.

Ministry officials said that some of the revenues, expected in January, were paid on February 1. Profit tax and VAT are paid on the last day of the month and the last day in January was Sunday, so it can practically be said that revenues are at the same level as in January 2009, the officials said.

As for budget spending, ministry officials said that some liabilities from the end of last year were paid in January, such as subsidies for voluntary pension funds or housing saving, and funds for the fund for decentralised functions.

Ministry officials said that yesterday EUR 500 million worth of Euro-bonds was paid successfully, and that talks were under way on kuna liabilities to be paid in March. The Finance Ministry is confident this issue, too, will be successfully resolved.

When asked if they were considering possible cuts in budget spending, ministry officials said they would see how the situation would unfold.

Tax revenues in January amounted to HRK 4.1 billion, around three million or 0.1 percent less than in January 2009, while revenues from contributions totalled 3.06 billion, eight percent down.

Monthly revenues from the so-called crisis tax amount to around HRK 204 million, while the increased VAT rate brings in around HRK 120-130 million of extra revenues, and taxes on mobile telephony services around HRK 30 million.

Budget expenses for employees totalled HRK 1.8 billion, 2.9 percent down from January last year, which is the result of a lower salary base.

Payments to citizens and households amounted to HRK 5.1 billion, 16.4 million less than in January last year.

Material expenses were HRK 601.1 million, 12.5 million more than in the same month of last year, the main reason being the costs of presidential elections.

Higher interest expenses in January caused an increase in financial expenses which totalled HRK 454.9 million, or 169.8 million more.

Subsidies were HRK 410.2 million, an increase of 105.5 million, which was the result of payment of subsidies to members of voluntary pension funds and farming subsidies.

Asked about possible changes in the VAT system, the introduction of a lower VAT rate on bread and milk and excise taxes on gas and electricity, which is related to Croatia's admission to the European Union, ministry officials would not comment, saying only that the ministry would provide relevant information on time.

 

(HINA)

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