Kosor describes 2009. as most difficult year since war time

Performing the last two transactions from the state budget in 2009 by paying slightly over HRK 10 million to the fund for the reconstruction of Vukovar and HRK 1 million to the oncological department of the children's hospital in Zagreb, Croatia's Prime Minister Jadranka Kosor said that 2009 "has been too difficult, and definitely the most difficult one since war years".

"At the end of this year which has been too difficult, and definitely the most difficult since war years, I am proud of having managed to carry out our projects and plans," Kosor said in the Finance Ministry.

Finance Minister Ivan Suker said that between 99% and 99.5% of plans for budgetary revenues would be performed and 99.7% percent of expenditure plans for this year.

This shows in the best way that the third revision of the state budget was very well planned and the introduction of new levies helped us to have stable public finances today, Minister Suker said.

Kosor agreed that the three revisions of the 2009 budget led to the stabilisation of the public finances and to savings in the amount of HRK 6.5 billion.

She said that the introduction of extra taxes on incomes and raising the Value Added Tax from 22% to 23% were the most difficult decisions which she and the finance minister had to make this summer.

"For the finance minister and me those were really the most difficult decisions, and we bore the brunt of those decisions. However, we were aware that this was the time at which we had to do such moves," Kosor said adding that she believed that the extra tax on income would be rescinded by the end of 2010, as envisaged by the relevant legislation.

(HINA)