Croatia’s Budget and GDP Growth in Good Shape

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Finance Minister Marić says that economy-wise everything is going according to the plan.

Croatian Finance Minister Zdravko Marić said on Wednesday that he expected GDP data for the second quarter to be in line with the government’s forecast and that the budget revenues are as expected, reports Jutarnji List on August 23, 2017.

“As a rule, I do not talk about our expectations, but on the basis of these macroeconomic indicators, we can expect that the second quarter GDP is on track with our forecasts for the whole year. Let us wait a few more days, and we will see the data,” said Marić when asked about the expectations regarding the GDP data for the second quarter.

Next week, the Central Bureau of Statistics will publish a report on the gross domestic product growth in the second quarter. The government’s budget for this year was based on a 3.2 percent economic growth estimate.

The Minister of Finance did not want to give any details on the budget revenues, saying only that everything was fine. “I do not like to boast much about budget revenues, but for now everything is going according to the plan,” said Marić.

Asked by journalists to confirm that the tourism industry is expected to provide at least 800 million kunas more to the budget than expected, Marić responded that it was still early for such data since tourism statistics take some time. “But, for the time being, the indicators are relatively good. In August, we can see the effects of tourism, especially from the perspective of VAT revenues from July, and it is also evident that August will be good as well,” he pointed out. Marić added that the indicators were good in terms of the number of arrivals of tourists and overnight stays, as well as their spending and that the weather conditions are good, but he noted that, unfortunately, the weather also brings some problems – such as fires.

Asked if there would be a further reduction in taxes if there is a surplus of budget revenues over expenditures, Marić said that the key to stable public finances was the expenditure side of the budget. “You know what I always say. That is the position I advocate as a minister, and I think I have the support of the government that the key to public finances is the expenditure side of the budget. The surplus of revenues should be used to reduce deficits and debt and for further tax relief,” concluded the Minister of Finance.

Translated from Jutarnji List.


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